REHOBOTH BEACH, Del. — A new privately owned parking lot in Rehoboth Beach is introducing a dynamic pricing model that adjusts rates based on factors such as demand and time of day.
The lot, located at the intersection of Rehoboth Avenue and Lake Avenue, is the newest parking option in the beach town. Unlike city-owned parking spaces, which use the ParkMobile app and charge a flat rate of $4 per hour, the private lot operates through the HonkMobile app.
According to the app, the Rehoboth Beach lot is the only location in Delaware currently using HonkMobile. It is also the only parking lot in the city using a dynamic pricing model.
Under the system, drivers could pay less than city parking rates during slower periods, but rates may increase when demand is high. When WBOC stopped by on Monday afternoon, one hour of parking cost $3.84.
Some visitors said the pricing model makes business sense.
"They're cashing in on the opportunity. You can't blame them, right? It's America," Diane Russel said.
Russel said the additional parking option could be helpful in a city where finding a space can be difficult, particularly during the busy summer season.
"I think it's a good idea. And they don't charge for the beach access like New Jersey beaches do, so that makes it easier to pay for parking."
However, some locals pushed back against the concept.
"I think it feels a little predatory, honestly," resident Josh Crossney said. "I think they probably come in in the guise that it could be cheaper, but then we all know how things like that work. It will probably end up being more expensive on those peak days when parking is harder to find."
Crossney expressed concern that prices could rise significantly during weekends and other peak periods. Another local, Russell Heid, questioned whether the private lot reflects positively on the city.
"If you feel you're getting ripped off down here, are you gonna come back?" Heid said.
Crossney suggested closer coordination between private operators and city officials.
"Maybe it should be more of a collaborative effort in the future. If people are going to be adding private things like that, maybe they should work with the city hand in hand versus just kind of willy nilly setting up lots and charging people for them," Crossney said.
The parking lot currently sits on a piece of land that is for sale. The owners of the parking lot did not respond to requests for comment.
City officials said they currently have no issues with the lot but emphasized that it is not affiliated with the city. Any fines or parking infractions associated with the lot should be addressed with the lot's owners or through the HonkMobile app, officials said.
