SpotHero is a premier American digital marketplace that connects drivers in search of parking with garages, lots, and valet services. Available in over 400 cities across the U.S. and Canada, the platform operates through both a mobile app and a website. Headquartered in Chicago, Illinois, the company has spent more than a decade establishing itself as an industry leader in digital parking solutions. Read more at chicago-future.
The Origin Story
SpotHero was founded in 2011 by Mark Lawrence and Jeremy Smith in Chicago, with Larry Kiss joining the team shortly after. It originally launched as a peer-to-peer service, allowing residents to rent out their private parking spots. However, the company soon pivoted to a more scalable model by partnering directly with commercial parking operators and garages.
In December 2012, SpotHero secured $2.5 million in venture capital from a heavyweight roster of investors, including Battery Ventures, 500 Startups, and Lightbank. By mid-2014, the company had expanded into several markets, including Milwaukee, and raised an additional $4.5 million to fuel growth. This expansion also led to the formation of a high-profile board of directors featuring executives from LinkedIn and Match.com.
Expansion and Innovation
Between 2011 and 2013, SpotHero’s workforce grew from five to 22 employees as the platform hit seven major U.S. markets. By 2016, the service reached Los Angeles, and in 2017, it added 13 more cities, including Austin, Indianapolis, Miami, and San Diego.
In 2017, the company launched SpotHero for Business, providing companies with tools to manage employee parking and automate expense reporting. Simultaneously, SpotHero introduced an open developer platform to integrate parking reservations into third-party apps. These efforts did not go unnoticed; in 2018, “Time” named SpotHero one of its “50 Genius Companies” for its role in reducing urban traffic congestion.
Innovation remains at the core of SpotHero’s strategy. The company deployed 500 Waze beacons across Chicago to improve GPS accuracy in underground tunnels and high-traffic areas. The platform has also integrated with Google Assistant and Hertz, while preparing facilities for the era of self-driving cars. In 2023, SpotHero launched “Flex Rates,” a dynamic pricing system that adjusts parking costs in real-time. By 2024, the app introduced EV-specific features, allowing drivers to reserve both a parking spot and a charging station in advance. Utilizing AI to predict lot occupancy, the service now helps drivers find spots 20–30% faster. Furthermore, the platform’s loyalty program provides corporate clients with discounts and bulk booking options through the app, making it an essential tool for large organizations.
Strategic acquisitions have been vital to this growth. SpotHero acquired San Francisco-based ParkPlease in 2015 and Parking Panda in 2017—a move that significantly expanded its Canadian footprint. In November 2020, the company acquired Toronto’s Rover Parking, adding thousands of new locations to its northern network.
Industry Impact
SpotHero is doing more than just finding spots; it’s streamlining urban mobility. By optimizing city infrastructure through dynamic pricing and seamless navigation integration, the company is setting the standard for digital parking in North America. Its deep integration with Google Maps and Google Search allows millions of users to book parking instantly while planning their routes.
Looking toward the future, SpotHero is readying its infrastructure for the next wave of transportation technology. This includes equipping facilities with IoT technology for automated entry and touchless payments, as well as preparing for autonomous vehicle fleets. By partnering with municipalities and operators across 400 cities, SpotHero continues to reduce urban gridlock and make city driving a far more intuitive experience.