Self-storage start-up Spacer has acquired online parking platform Parkhound as it strives to be the dominant player in Australia's $2 billion storage, parking and warehousing market.
Spacer began in 2015 as an online marketplace that connects people with space with those who need space to store any belongings from clothes, documents to boats and cars.
Co-founder of Spacer, Roland Tam says growth in apartment living in dense cities where a two-bedroom unit typically has only one car bay has fuelled the need for alternative and cheaper parking.
"We found through Spacer that there was a need for storage and we organically grew into parking," Mr Tam told AAP.
"Parkhound, being 100 per cent parking, is a natural fit with what we do."
Parkhound, founded by Aussie entrepreneurs Michael Nuciforo and Robert Crocitti in 2013, has more than 55,000 members who exchange and lease parking spaces from their homes or businesses.
Mr Tam said Parkhound had a strong presence in Sydney, Melbourne, Brisbane, Perth, Adelaide and even in regional areas, while Spacer has been more Sydney and Melbourne focused.
He said this was a significant acquisition that would give Space access to a large database and opportunities for cross marketing.
"Typically we find people who are happy to rent their car are happy to rent their space and they are also happy to do pet sitting so there is real synergies across the user base," he said.
Parkhound also brings a number of business partnerships with CBD parking operators.
It has more than 10,000 locations across Australia where people can make between $350 to $700 a month renting a parking space, while those who rent a parking space can save up to 50 per cent compared to the rest of the market, according to Parkhound.
Spacer raised $2.7 million from investors to acquire Parkhound and to expand the company's partnerships with commercial storage operators.
The group acquired its American counterpart Roost earlier this year to move into the US storage market and across its US and Australian business, it has more than 100,000 users and 15,000 hosts with revenue growing 20 per cent monthly.