Uber Reportedly In Talks To Acquire Parking App SpotHero

• The Information couldn’t determine the potential price of the deal but noted that SpotHero most recently raised more than $110 million from investors at a valuation of $290 million.
• Neither Uber nor SpotHero confirmed the talks, the report said.
• SpotHero partnered with Uber rival Lyft for a few brief months towards late 2022 and early 2023.

Ride hailing company Uber Technologies (UBER) is reportedly in talks to acquire parking app SpotHero.

The Information reported on Wednesday that discussions are ongoing and the deal could still fall apart. The news outlet couldn’t determine the potential price of the deal.

SpotHero is a digital parking marketplace that lets drivers find, reserve, and prepay for parking spots in garages, lots, and valet services via its app or website. As per the report, the company most recently raised more than $110 million from investors at a valuation of $290 million.

Neither Uber nor SpotHero confirmed the talks, the report said.

UBER shares traded 0.3% lower at the time of writing.

SpotHero’s Range And Access

SpotHero allows drivers the option to search and compare prices at thousands of parking facilities across North America, including near airports. According to the company’s website, it has helped park over 100 million cars in its 13 years of being in service.

The company, which originated in Chicago, has access to parking in over 400 cities in the U.S. and Canada. SpotHero makes money primarily through a commission model, taking a percentage from parking operators for each booking made via their app, plus potential small fees per transaction.

For Uber, the acquisition would mark its latest since it acquired taxi company Dantaxi earlier this year. The acquisition then was aimed at enhancing Uber’s reach in Denmark.

SpotHero And Lyft’s Now Defunct Partnership

SpotHero and Uber rival Lyft partnered in 2022 to integrate SpotHero's parking reservation tech into the Lyft app, allowing users to find, book, and pay for parking spots directly within Lyft in select cities.

However, Lyft announced in May 2023 that they would stop offering parking reservations through their app, effectively ending the partnership.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around UBER stayed within the 'bearish' territory over the past 24 hours while message volume stayed at 'low' levels.

UBER stock has gained 36% this year. 

Read also: Li Auto Plans Major Product Reshuffle To Reverse Sales Decline: Report

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