Came across this market sizing question, and it did baffle me. Not sure how to approach it, wether estimating the number of cars etc. Any help would be much appreciated. thanks
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Estimate the amount of revenue that the London councils earn from parking spaces every year.
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Hey! I've had an attempt as follows:
[Total Revenue] = [Revenue from Permit Spaces] + [Revenue from Council Run Car Parks]
Permit Revenue
[Revenue from Permit Spaces] = [Annual Revenue/Permit] X [No. Permits in London]
[No. Permits in London] = [No. residential roads in London] X [% roads with permit spaces] X [No. permit spaces/road] X [% permit spaces paid for/year]
[No. permit spaces/road] = [[Mean length per road] / [length of space + space between space]]X2
[No. residential roads in London] = [Mean No. roads/square km] X [Area of London] X [% of roads which are residential]
Car Park Revenue
[revenue from car parks] = [revenue per car park] X [No. car parks in London]
[revenue/car park] = [revenue per day] X [no. days open/year]
[revenue/day] = [No. tickets sold/day] X [mean price per ticket]
[No. tickets sold/day] = [No. tickets per 'session'] X [No. 'sessions'/day]
[No. tickets/'session'] = [car park capacity] X [mean occupancy rate]
[No 'sessions'/day] = [No. hours car park open/day] / [Mean length of stay per car (hours)]
[No. car parks in London] = [No. car parks/square km] X [Area of London (square km)]
I'd then make some assumptions on all the above numbers and arrived at an answer of around £200M/year.
Would be intersted to see how other people approach this. Thanks!
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