6/13/2018Speed Camera Companies Seek To Reinvent Selves
Redflex and ATS both seek to enter European markets while diversifying their ticketing technology.
The largest players in the US photo enforcement market took steps to rebrand themselves last week in the face of rising opposition to the use of automated ticketing machines. Redflex Traffic Systems on Friday unveiled its plan to expand the business outside of the red light camera and speed camera market in light of significant legal and financial troubles.
"North America (particularly the US), where the bulk of our asset base, [earnings] and cash flow resides, continues to be a low/no-growth market made more challenging by public pushback against photo enforcement," Redflex Chairman Adam Gray told investors in 2014 when a wide-ranging corruption scandal was uncovered.
Since then, Redflex has not seen a profit, with net losses totaling $80 million so far. Now Redflex proposes to dive head first into the "intelligent transportation systems" (ITS) market and use its camera technology to move into toll road enforcement and automated ticketing for miscellaneous paperwork offenses.
The company announced the intention to get involved with managed motorways, which use electronic signs to lower speed limits and change lane usage, allowing for the issuance of more citations. Redflex would provide cameras to monitor the signs and issue tickets. The company's marketing material shows the material being tested on European roadways, where the public is more accepting of receiving tickets in the mail.
Redflex rival American Traffic Solutions (ATS) has already been heavily involved in the ITS and toll road space. The company last week announced it would now be known as Verra Mobility Corporation to signify its intention to grow outside the United States with ticketing and tolling solutions for Europe, following the acquisition in April of London, England-based Euro Parking Collection.
While the rebranded company says the word Verra was formed by combining the Latin root "ver" for truth and "terra" for earth, Latin already has the "verr" root in the form of the verb verro, which means "to sweep away" or "clean out." Verra Mobility is owned by the Platinum Equity investment firm.