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USPACE, Taiwan's smart parking platform, has announced a significant acquisition of the Japanese shared parking startup Nokisaki (軒先) for a multi-million dollar sum. This strategic move will elevate USPACE to become the largest smart parking platform in Asia, managing nearly 2,000 parking sites with close to 90,000 smart parking spaces and over 1.4 million registered members, establishing itself as a prominent international smart parking company.
USPACE began its journey eight years ago by expanding one private parking space at a time on the streets of Taipei. In 2022, the company received a strategic investment from Taiwan Mobile, which helped launch the "Taiwan Mobility" strategy. This initiative combined Taiwan Mobile's advanced mobile network technology with USPACE's IoT services, effectively addressing idle parking spaces, promoting electric vehicle adoption, and reducing carbon emissions in Taiwan. The success of this collaboration paved the way for USPACE's ambitious expansion into the Japanese market.
USPACE CEO Allen Song (on the left of the picture) emphasized the importance of the acquisition: "This acquisition not only consolidates revenue and market share but also demonstrates Taiwan's leading position in IoT technology and AI applications. It underscores the potential and strategic importance of the future parking market and mobility services."
Three years ago, USPACE identified the Japanese market as traditional and conservative, with a slow pace of digital transformation. However, post-pandemic, both businesses and consumers in Japan have become more receptive to diverse payment methods, and the government has actively promoted digital transformation. This has created an opportune environment for USPACE's expansion.
USPACE's advanced AI algorithms can identify car brands, models, and colors, creating detailed user profiles. The integration of natural language models and data enables the automation of customer service and operational systems, significantly improving efficiency. According to Song, this integration can reduce the need for human customer service by at least 80%, providing a cost-effective solution in Japan, where labor costs are high, and significantly enhancing service quality and immediacy.
Taiwan Mobile, a key shareholder of USPACE, has played a crucial role in its expansion. Tony Lin, Taiwan Mobile's Chief Business Officer for Personal Users, stated at a Tokyo press conference that the company, targeting the "shared economy," led a NT$200 million investment in USPACE in 2022, acquiring a 30% stake. Taiwan Mobile utilized its strengths in telecom, big data, IoT, and customer service to assist USPACE's expansion in Taiwan. The acquisition of Nokisaki marks a pivotal milestone for both companies in expanding their international market presence.
Nokisaki, a well-known shared parking brand in Japan with approximately 670,000 members and 33,000 parking spaces, will be integrated into USPACE's platform. Nokisaki President Nishiura noted that USPACE's IoT hardware technology enables real-time reservations and minute-based billing, maximizing parking space utilization. This acquisition will allow users in Japan to find and reserve parking spaces in real-time, with flexible billing options to create maximum efficiency. From a market perspective, Nokisaki is expected to contribute billions of yen in annual revenue to USPACE's parent group, broadening USPACE's service scope and strengthening its leadership position in the Asian market.
USPACE's future plans include extending its integrated vertical service applications from Taiwan to strategic investments and acquisitions in Japan. The company aims to gradually expand its international business and enhance mobility services, with innovative and breakthrough developments in charging, refueling, car washing, e-commerce, and vehicle insurance. The future looks promising for USPACE as it continues to lead the way in smart parking and mobility solutions.
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