Free Parking Isn't Free: How Guatemala City's Black‑Market 'Cuida Carros' Manage the Curb

When curb space is underpriced, drivers circle blocks hunting for open spots — a phenomenon urban planners call "cruising for parking." The result is wasted time, extra fuel consumption and added congestion. In Los Angeles' Westwood Village, for example, drivers searching for parking added the equivalent of roughly 950,000 extra miles and burned about 47,000 gallons of gasoline in a year.

Why Free Curb Space Fails

UCLA economist Donald Shoup has argued that market-based curb pricing — setting rates so one or two spaces remain available on every block and reinvesting the revenue locally — is the clean, effective remedy. Instead, many cities require developers to build off-street parking, which consumes land, raises construction costs and inflates housing prices without solving curb scarcity.

Guatemala City's Informal Solution

Guatemala City neither mandates parking nor meters the curb. In that policy vacuum, a widespread informal system has emerged. Street attendants known as cuida carros (literally, "those who take care of cars") stake out curbside spaces with bottles, cones or buckets, assign prices, and collect cash. There are no apps, permits or meters — just an everyday, unofficial marketplace that brings a measure of order to chaotic streets.

How Cuida Carros Operate

Cuida carros typically work long shifts — often eight to 12 hours a day, five to six days a week — and have organized into a loose structure. A daytime crew serves workers and students from roughly 5 a.m. to 6 p.m., while a nighttime crew caters to restaurants and nightlife until about 1:30 a.m. Rates vary by location and time: busy nightlife districts cost more, and overnight parking can run roughly double daytime prices. During peak periods or events, attendants will raise rates on the spot — a form of dynamic pricing similar to Shoup's recommendation.

The attendants' claims to particular stretches of curb are informal. Some inherit a turf from relatives, some are appointed by shop owners seeking theft deterrence, and others simply homestead a space. A few operators have expanded into small teams with shift rotations and shared earnings.

Why Drivers Pay

Cuida carros consistently identify safety as their chief selling point. Vehicles in Guatemala City face risks ranging from smashed windows and stolen batteries to thefts when drivers walk away. Attendants act as 'eyes on the street' — a concept popularized by Jane Jacobs — offering surveillance, moving cars for deliveries, holding keys for trusted regulars, and sometimes reserving spaces for monthly fees.

'A camera won't stop someone from stealing your battery or breaking your window. Who keeps watch? I do,' said one attendant, describing the value of a human presence.

Economics, Legality, And Public Opinion

Daily earnings for cuida carros average about $6.50 — below Guatemala City's median income but enough for many attendants to sustain themselves. Public opinion is mixed: some drivers welcome the sense of security and convenience; others view the payments as petty extortion. Legally, attendants operate in a gray area. Authorities sometimes remove them, but they typically return within days, and in some neighborhoods attendants cooperate with police by sharing information about thefts.

Broader Implications

Cuida carros illustrate a broader phenomenon: when public policy fails to price or manage scarce urban resources, entrepreneurial actors often fill the gap. In some respects the attendants have 'priced the unpriced' and provided valuable services. In others, their informal claims and lack of regulation create uncertainty, potential for conflict, and questions about equity, safety, and accountability.

Ultimately, the cuida carros system highlights both the costs of leaving curb space unmanaged and the creativity of urban residents when governance is incomplete. Policymakers seeking fairer, safer, and more efficient outcomes could learn from these informal practices while addressing their legal and social shortcomings through clearer rules, consistent enforcement, and — where feasible — market-based curb pricing.

Originally published on Reason.com.