Business model of “Handset Parking Payment System”

• Main Authors: Chun-Hsien James Liu, 劉鈞憲
• Other Authors: 江炯聰
• Format: Others
• Language: zh-TW
• Published: 2004
• Online Access: http://ndltd.ncl.edu.tw/handle/66350312627218110140

碩士 === 國立臺灣大學 === 商學研究所 === 93 === Basically, “Handset parking payment system” (HPPS) is one of the applications of “Mobile value-added services”. This thesis specifically makes a deeper analysis to only such special application in the payment of parking fee by using handset. Comparing to the broader definition of the generalized “Mobile value-added services”, the breadth of the analysis of this thesis is much narrower. Just because its specificity to such subject, however, we can make a deeper research and thus hit the key points of such specific service business. This thesis also discusses the payment mechanism that is critical to the success of such service business to see if the m-commerce (or m-payment1) can be applicable in the pre-payment of the parking fee by handset or not. The definition of m-commerce is also very broader. If feasible, it can be used in all kinds of transactions in daily life. But this thesis has no intention to discuss the generalized m-commerce. We narrow down the scope to the discussion that whether the pre-payment mechanism is suitable for the case of handset parking payment. In Asia or North America area where the Internet service business is prosperous, there is no handset parking payment system in real commercial service for public roadside parking space. We really want to know the reasons why. In Taiwan, the subscription rate of handset already exceeded 100%. The handset parking payment system should have already come out. But the situation is that no real investment has been made in such service business, while few people have tried to promote it. This thesis describes a comparatively feasible business model and tries to find out where the problems are, what the key difficulties exist during the interaction between the consumers and the service provider, whether the difficulties can be overcome, and what the solutions can be. In early 2004, there were few reports in local newspapers that under the current manual parking fee payment system, the driver had got a very heavy fine or penalty because of forgetting to pay the parking fee before the deadline. The news trigged me the idea to write a thesis related to the improvement of such inconvenience. The thesis will analyze the feasibility of the business model that can also be used as a business plan as well for those people who are interested in investing such new service business. The thesis firstly analyzes who is more suitable in running such new service business, then describes the drivers’ application process to be authorized to use the system, parking process, leaving process, and the service provider’s auditing process, parking fee collection process, and the process that the service provider pays the collected fees to the parking space owner. To overcome the drawback of the micro-payment2 of parking fee, and to lower the costs of handling charges incurred during withdrawing the driver’s deposit account in the bank when driver buys the pre-paid e-card with handset or Internet or IVR (interactive voice recording message provided by telephone company), a pre-paid replenishing e-account (or e-card) mechanism is proposed as the ideal tool for the parking fee payment. The thesis then describes the needed personnel and organization in order to run the service business in the whole island. The overall costs to run the business for the first 4 years are estimated. The revenue per year, under the current fixed rate of income per parking handling, and the assumption of targeted market share, is also calculated. Then, the year of breakeven is identified. The usable marketing target plan is also formulated. Finally, the thesis discusses some issues that are related to the business model of HPPS. The issues include the Competing Technologies, Extension of such investment to the other service business, Entry Barrier, Confirmation of driver ID, whether ID and payment should tie to handset SIM card, Security3 of payment using handset, Fraud, How the nationwide payment platform4 to be launched in Oct 2004 by bank group will impact such new service business, and other non-technical problems. From the discussions of these issues, we can find more or less the answers why the handset parking payment system cannot attract the attention of the key investors. In these issues, some of them are related to the consumer behavior aspects, which are not in the scope to be covered in this thesis. The consumer behavior will impact the success of the service business. But it is not that clear cut in nature to decide easily whether right or wrong. The investors need to make a further study in these consumer behavior related issues before making the final decision.