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Why Have Parking Apps like Haystack Failed?

29 January, 2015 | Article Source: Raj Srivastav  |   (No Comments) | 27,189 Views
Why Have Parking Apps like Haystack Failed?

Why Have Parking Apps like Haystack Failed?

Why do businesses and apps fail? Once powerful until the cookie crumbles. Let’s look at the most trending insights on the parking app Haystack. Haystack was a parking app that got burned by the government. But why? The app allowed users to sell the parking spots their cars were occupying to other users who would come along to take it. Basically, it allowed people to find guaranteed parking. The problem was, by selling the space, the app caught the attention of regulators—how can a user sell something they don’t own?

 

Regulators argued that Haystack encouraged squatting on spaces, artificially limiting supply of spaces so that they could profit from customers using the app. Though Haystack certainly could offer solutions to some users, it really didn’t solve any underlying issues with the parking industry, and in fact it could be argued it only contributed to the congestion. At Software Developers Inc we definitely believe that a  successful app is one that solves a problem. Haystack parking app is a great business idea but lets read on more to explore why the app failed.

 

Boston disrupts Haystack

 

Boston and other cities quickly moved to ban Haystack, and by extension any such apps that seek to profit off of public parking. Today, buzz about Haystack is dying down. The #Haystack tag on twitter is split between journalists dissecting its downfall and other people generally referring to actual stacks of hay.

 

Parking apps (connect with Software Developers Inc here to build parking apps) are valuable. Parking is clearly a problem that needs to be solved. Human transportation is a horribly complex and expensive logistical problem, and right now in dense urban areas, there simply isn’t enough room to park cars. It’s not surprising that apps like Haystack sought to find new solutions for the parking problem.

 

The problem today is that there are too many people and not enough parking spaces. Surely, there must be ways to disrupt the parking status quo in ways that don’t appear to be so underhanded. Haystack fell by the wayside, which may be a good thing for the integrity of public resources, but the parking conundrum continues unabated, and it will be up to some other startup to find a solution.

 

Final thoughts

 

Haystack was regulated out of existence. But if you look at the comparable story in #Uber, which has run into more than it’s fair share of legal troubles, something is clearly different. Uber didn’t die. Why? Because Uber expanded faster than the regulation could manage.

 

Before bureaucratic systems could get even recognize what was happening, much less push through regulations, Uber was already in high demand providing a service that people wanted. It spread to multiple major cities in quick succession, so that no new target city could preemptively ban it. Speed was key. And in Uber’s case, it worked. The people tend to be on Uber’s side, because frankly they rely on it now.

 

Could a parking app follow the same pattern? Maybe. The key is to make a product that people really want to use, and to spread it as fast as possible. We’re still waiting for the next big startup to disrupt parking.

 

Software Developers Inc is a mobile app design and marketing company based in Silicon Valley, where we’ve witnessed the rise and fall of many different startups first hand. If you’re looking for expertise in the mobile app industry or advice on how to attract angel investors and venture capital for startups call us today!

 

You can reach us at 408.802.2885 or leave a message on our website!

 

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