Metropolis

Metropolis is an artificial intelligence (AI) company providing technology for checkout-free transactions at parking lots. Metropolis's computer vision platform recognizes vehicles entering the lot, assigns a rate, and starts the clock for their stay. As vehicles leave the lot, it recognizes the vehicle pairs the event with when it entered, stops the clock, and completes a charge. Metropolis states that over 5 million drivers use Metropolis in over forty major metropolitan centers. Drivers with a vehicle and a US or Canadian phone number can sign up for the company's web app or download its iOS app to access Metropolis parking facilities.

Metropolis was founded in 2017. The company raised over $200 million in funding in three funding rounds, including a 2022 series B round of $167 million. In 2023, Metropolis raised $1.7 billion in funding to acquire SP+ at a valuation of roughly $1.5 billion. Metropolis stated the acquisition will bring its technology to over 360 cities, serving millions of consumers and processing over $4 billion in payments annually.

Metropolis offers multiple subscription models for real estate owners looking to integrate its technology. The company states it can onboard new customers in thirty days or less with zero hardware costs. The "Scan" subscription is available for $0 per space per month and requires no equipment. It enables payment via QR code and provides financial reporting. The "Vision" subscription, powered by Metropolis's Orion computer vision, costs $15 per space per month for drive-in/drive-out payment capabilities and an analytics portal. The "Vision+" custom plan offers additional features, including nested zones and custom analytics. Metropolis also offers the M1 plan for customers with large portfolios containing multiple buildings that want to expand through new product developments.

Metropolis was founded in 2017 by CEO Alex Israel, Peter Fisher, Courtney Fukuda, and Travis Kell. The company began building its platform for providing access to authorized vehicles that would become its automated parking payment product powered by AI. In 2018, the platform launched with its first location, a commercial garage in Venice, California. The next year, Metropolis's network of parking facilities grew with different asset types in Los Angeles, the platform integrated into field operations and new use cases such as class-A office buildings, multi-garage complexes, and valet services.

In June 2019, Metropolis raised $17.5 million in seed funding from RXR Realty, Slow Ventures, and Zigg Capital. In February 2021, Metropolis closed a $41 million series A round led by 3L Capital with participation from 01 Advisors, Dragoneer, and Slow Ventures, as well as real estate investors Starwood, RXR, DivcoWest, and Dan Doctoroff. The funding allowed the company to grow its team, build out its product, and expand into several major US cities such as New York, San Francisco, Nashville, Austin, and Seattle. In 2022, Metropolis acquired Premier Parking, a Nashvilled-based parking operator with over 500 locations, and raised $167 million in series B funding. The round was co-led by 3L Capital and Assembly Ventures with participation from Dragoneer, Eldridge Industries, Silver Lake Waterman, UP Partners, and Dan Doctoroff. On its fifth anniversary, Metropolis had grown to over 2,000 employees, 2.3 million members, and more than 600 locations.

On October 5, 2023, Metropolis raised $1.7 billion to acquire SP+, a provider of parking facility management services. Eldridge Capital and 3L Capital co-led the tranche with participation from BDT & MSD Partners’ affiliated credit funds, Vista Credit Partners, Temasek, Slow Ventures, and Assembly Ventures. As a part of the financing, Metropolis will take on $650 million in loans and $1.05 billion in Series C preferred stock financing.

SP+ is a technology and operations management provider of mobility services for aviation, commercial, hospitality, and institutional clients throughout North America and Europe. It has over 20,000 team members managing approximately two million parking spaces at over 3,300 commercial locations and over 160 airports. Metropolis paid $54.00 per share in cash of SP+. This represents a premium of approximately 52% to the SP+ closing stock price on October 4, 2023, and approximately 28% to its 52-week high for an aggregate enterprise value of approximately $1.5 billion. Metropolis states the acquisition will bring its operations to over 360 cities, serving millions of consumers and processing over $4 billion in payments annually.