The city of Chicago plans to sell rights to its 40,000 parking meters for 20 years to a private company. Candidates must estimate a reasonable bid price for Parking GenNext. The case involves revenue projection, cost analysis, and creative problem-solving. Key components include:
- Estimating revenue based on meter locations, pricing tiers, and usage patterns
- Calculating costs, including one-time meter upgrades and recurring expenses
- Considering growth rates and discount factors
- Brainstorming innovative pricing strategies and technological enhancements
- Addressing public expectations for service quality improvement
The case tests mathematical skills, market sizing abilities, and strategic thinking in a municipal privatization context.