Los Angeles Parking Upgrade: $41 Million Investment

Metropolis Enters the Automated Parking Management Arena

A new Los Angeles-based startup, Metropolis, is poised to challenge ParkMobile, a subsidiary of BMW, within the automated parking lot management sector.

The Genesis of Metropolis

Since its inception in 2017, Metropolis has been dedicated to modernizing parking facilities through a computer vision system. This system is designed to automatically identify vehicles upon entry and exit.

Founder and CEO Alex Israel brings considerable experience to the venture. He is a seasoned entrepreneur who previously founded ParkMe, which was acquired by Inrix in 2015.

Securing Funding for Expansion

Metropolis has recently announced its official launch alongside a significant $41 million funding round. This investment comes from a diverse group of investors.

• Starwood and RXR Realty: Leading real estate management companies.
• 01 Advisors: Founded by Dick Costolo and Adam Bain.
• Dragoneer: A prominent investment firm.
• Slow Ventures: Led by former Facebook employees Sam Lessin and Kevin Colleran.
• Dan Doctoroff: Head of Alphabet’s Sidewalk Labs initiative.
• Baron Davis: NBA All-Star and early-stage investor.
• 3L: A global growth equity firm that spearheaded the funding round.

A Vision Beyond Parking Payments

Alex Israel envisions the parking payment application as the cornerstone for a larger enterprise. The company aims to transform parking spaces into versatile hubs for various urban mobility solutions.

This ambition echoes the goals of REEF, a Florida-based startup that is also exploring innovative uses for existing parking infrastructure. REEF’s substantial $700 million funding round last year demonstrates the potential within this market.

Focus on Mobility

However, Metropolis intends to maintain a sharper focus on mobility services, differentiating itself from REEF’s broader approach. Israel questions how parking will evolve over the next two decades as transportation methods change.

The company plans to utilize the newly acquired funding to expand its operations to over 600 locations within the next year. To date, Metropolis has raised a total of $60 million since its founding in 2017.

Expanding Service Offerings

While computer vision and machine learning will initially serve as the entry point into parking facilities, Metropolis anticipates incorporating additional services. These could include vehicle cleaning, charging, storage, and logistical support.

Israel explains that Metropolis aims to act as both an integrator of these services and, in some instances, a direct service provider.

Current Operations and Future Growth

Currently, Metropolis manages 10,000 parking spaces for major real estate owners, and anticipates a surge in demand for its services.

Israel notes that large property owners often overlook the infrastructural needs for seamless access to parking facilities. His technology enables buildings to maximize revenue through features like dynamic pricing and yield optimization.

“Metropolis is identifying the most effective utilization of space, whether it’s for scooter charging, scooter storage, fleet storage, or logistical operations,” Israel stated.