Whenever there is a high rise property, parking spaces becomes an issue. Some tenants may want more spaces while some say that they don’t need. Property developers have instead come up with a model to solve this. Moda Living, a developer in the UK has come up with a solution by partnering with Uber.
What they are offering to their tenants is that for anyone who wants to relinquish their right to a parking space in the building, Moda will offer them £100 of ride-hailing credit every month. This is the first of a kind partnership for Moda Living and Uber.
Uber has already a similar model in San Francisco with some other building owners as well.
This definitely helps discourages car ownership especially in places where it is already extremely congested and in need of ways to reduce traffic and pollution. The positive side of things is that by having less or not having parking spaces allows for the developer to use the space for more amenities for the building residents. For Uber, they are getting a steady stream of revenue from the users as well as create that behaviour of constantly using ride-hailing services.
A win-win situation overall.
Jo Bertram, regional general manager of Uber in the UK, said:
“Cars are one of the most expensive assets most people own, but they’re used just five per cent of the time. Our mission is for everybody to have a reliable ride at the touch of a button so they don’t need their own car. These plans for what will be a unique partnership with Moda Living is a big step forward in making that a reality. By getting more people to ditch their own vehicles we can put some of the space wasted on parking to much better use. And with more people using car sharing options like UberPOOL we can reduce congestion and emissions too.”
Johnny Caddick, managing director of Moda Living, said:
“Our apartments are for rent rather than for sale so we need to consider how our customers will live in cities in the future. Embracing future technology is vital from day one and these plans for a partnership with Uber would not only give our customers an affordable ride at the touch of a button – it would also enable us to design better buildings with more space for social interaction. Everyone wants a more frictionless life and Uber’s model fully aligns with our approach of wanting to drive efficiency and maximise value for our customers.”
Richard Jackson, co-founder and managing director of Apache Capital Partners, said:
“Cities face huge challenges that can only be solved through collaboration. This proptech partnership around cutting car ownership is one logical step to free up space and cut emissions. Uber’s endorsement of the Moda Living brand sends a clear message to civic leaders that we are ready and willing to help improve not only the lives of renters but also the communities around the buildings we invest in.”
Peter Burns, managing director, UK development and residential capital markets at CBRE said:
“We know real estate development is about far more than bricks and mortar and this tie-up shows that Moda Living with Uber is prepared to be not just a build to rent pioneer, but a genuine innovator in proptech as well.”
Gareth Lewis, UK real estate director at PwC, said:
“Moda Livings tie-up with Uber is a great example of an innovative approach by a property business that capitalises on both advances in tech and the growing relevance of the sharing economy. Encouraging alternatives to car-ownership is essential to improving the liveability of cities, and partnerships like this will undoubtedly raise the level of debate around alternative uses for the significant amount of space currently dedicated to car parking. “