The prospect of parking fees skyrocketing to an eye-watering $50 an hour has Australian motorists on edge, as a major shake-up in the parking and payment industry looms. The potential merger of two titans in the field, Orikan Group and Duncan Technologies, has sparked serious concerns about the future affordability and competitiveness of on-street parking solutions.
Orikan Group and Duncan Technologies are not just any companies; they are behemoths in the realm of on-street parking, supplying a significant portion of the parking meters, enforcement software, and infringement solutions that keep our city streets orderly. Their proposed union, however, has set off alarm bells at the Australian Competition and Consumer Commission (ACCC), with fears that this could lead to a monopolistic stranglehold over the market.
ACC Commissioner Philip Williams has voiced his apprehension, stating, ‘We are concerned that the proposed acquisition would substantially lessen competition in the market for end-to-end on-street parking solutions, as Duncan is the primary competitor to Orikan.’ This merger could potentially give Orikan the power to sideline other providers, making it harder for them to compete for vital council contracts.
The implications of such a merger are far-reaching. Orikan already boasts a hefty portfolio of contracts with state governments and local councils across Australia and New Zealand. Duncan, on the other hand, is a key player in the maintenance of parking meters and the provision of enforcement solutions. Together, they could form an entity with unprecedented control over the parking landscape.
The ACCC’s concerns are not unfounded. The parking, payment, and enforcement industry in Australia is a lucrative one, valued at approximately $4.5 billion annually. A merger of this magnitude could stifle innovation and lead to less competitive tender responses from local councils in need of on-street parking solutions.
Saxon Hill from Vehicle Monitoring Systems, a technology provider to Duncan, paints a grim picture of the future if the merger goes ahead. He warns that a simple trip to the beach or park could end up costing motorists up to $50 an hour. ‘If these two entities are merged, it will be just like supermarkets, toll roads, and airlines when one entity gets a stranglehold and there is no natural competition,’ Hill explains. ‘The market ends up being dominated by a gorilla – everything just becomes more expensive.’
The frustration of parking is already a common grievance among drivers, with meters that start at $10 and require persistent pressing to adjust to the desired amount. But according to Hill, this is just the tip of the iceberg compared to what could happen if Orikan and Duncan join forces.
The ACCC is taking this matter seriously and has called for submissions from interested parties until December 19, with a final decision on the merger expected by March 13, 2025. This gives the public and industry stakeholders a chance to voice their concerns and potentially influence the outcome.
What are your thoughts on the potential rise in parking fees? Have you experienced exorbitant parking costs in your area? Share your stories and opinions in the comments below, and let’s keep the conversation going.
Also read: Parking ding costs on the rise. Here’s how to avoid them
