RingGo rakes in record parking profits as government delays fee overhaul

RingGo, Britain’s largest parking app, has reported record takings of £38 million in parking fees, following a government decision to postpone a new platform intended to cut costs for motorists.

The app, now under Swedish ownership through the group Arrive, enables drivers to pay for parking at more than 17,000 different UK locations. Parking charges are passed to operators such as local councils, whilst RingGo typically adds a service charge of 20p per transaction, the primary source of its £37.6 million revenue for the last year—a 26% increase over the previous year’s £29.9 million. Profits nearly doubled to £7.9 million, compared to £4.6 million twelve months prior.

The company’s accounts reveal that 11.5 million people used the app in the past year, up from 10.3 million previously. Though digital payments offer convenience and the ability for drivers to track their tickets, the extra costs drawn controversy—particularly in areas where faulty machines mean no alternative payment options exist. Occasionally, the company waives its fee, generally when directly compensated by a local authority.

Plans for a National Parking Platform (NPP), intended to foster increased competition and reduce costs by allowing users to select from multiple apps, were originally due for launch last autumn. The British Parking Association has stated it anticipates fees will fall once the scheme is in wider operation. However, implementation has slowed under Labour, with Transport Minister Lilian Greenwood opting to redraw the scheme to avoid reliance on public funds. Pilot programmes have already begun in select regions.

Annual spending on council car parks reached a record £2.3 billion in England, according to the AA, up from £2.1 billion the previous year. Councils are reported to have made £1.2 billion in profit from these operations, leading the AA to characterise parking fees as a form of “local tax” for many authorities. RingGo remains a key figure in this space, generally charging 10p to 20p per session, with additional charges for alert services.

The app was originally founded in 2005 and changed hands twice before coming under the Arrive umbrella. As the debate over digital parking charges intensifies, RingGo’s soaring revenues highlight the financial implications of delayed industry reform.