Taxi disruptor Uber and PRS developer Moda Living are forming a joint venture which they believe will reduce road congestion and free up surplus development land.
The proposed partnership will see tenants of Moda’s future developments offered an incentive of up to £100 of Uber credits per month if they agree to give their parking space back to the developer. The developer has more than 6,000 homes in its pipeline.
The amount of credits awarded to each flat would depend on the location of the development and what the average Uber prices are in that city. A standard fare in an Uber in Manchester is £1.30 per mile.
If enough tenants agree to the deal, Moda believes it can then use the surplus car parking space for alternative uses.
The concept will be trialled at Moda’s Angel Gardens development in Manchester, which is currently under construction and scheduled for completion in 2018. The 466-flat Angel Gardens could release 46,600 sq ft for alternative uses if all tenants in the scheme agree to the Uber deal.
However, Moda would need to secure additional planning permission if it were to use the car parking space for an alternative use. It would also have to agree terms with residents ahead of finalising lease agreements.
As part of the Uber deal, Moda will provide a number of parking spaces and amenities for Uber drivers at each development, including a pick up and drop off point for residents. Rather than Uber pay a rent for these facilities, Moda will receive the Uber credit for residents at a discount to the normal fare.
Jo Bertram, regional general manager of Uber in the UK, said: “Cars are one of the most expensive assets most people own, but they are used just 5% of the time. By getting more people to ditch their own vehicles we can put some of the space wasted on parking to much better use.”
Moda said the prospect of an Uber discount would attract tenants to its schemes in an age when car ownership is reducing and would help it to fully let its properties.
Managing director Johnny Caddick said: “Our rationale for the rental proposition is similar from a car ownership perspective – so we can see huge potential with this partnership. We have not finalised a lot of the details, but it is a mutual endorsement.
“It may change by the time Angel Gardens opens in 2018, but we are trying to think about where the future is going.”
Uber formed a similar joint venture with San Francisco-based PRS developer Parkmerced in May last year. Tenants at the development were offered a $100 per month voucher for Uber rides. The results and take-up of the programme have not yet been released.
Uber, which operates in 20 UK towns and cities, including Birmingham, Brighton and Manchester, has faced a backlash from other taxi operators andlocal authorities. It now has to get permission from the local council before operating in a new area.
Comment: Share dealing
Eliminating on-site parking and encouraging ride-sharing addresses several problems, writes David Lewis, partner at NBBJ.
It is well-known that parking minimums deaden streetscapes and consume space that could be put to more productive uses. Ride-sharing could also ease pressure on public transport.
But it could also create new problems. Evidence from New York suggests that the growing number of Uber and Lyft drivers perusing the streets – not to mention the increase in freight deliveries caused by online shopping – is making traffic worse. Imagine queues of Ubers and taxis all lining up outside the building at 8am to pick up residents for the morning commute.
To send feedback, e-mail amber.rolt@egi.co.uk or tweet @AmberRoltEG or @estatesgazette
