Ultimately, this is an example of government not charging a high enough fee for use of a common public resource. There are lots of examples of this. Usually governments do this in order to provide the resource equally to all people, which is a noble and understandable goal. The downside risk is a tragedy of the commons, where common resources are used to depletion because there is no signal to the users that they are causing harm by depleting it.
In our economic system, we use price as a scarcity signal for buyers and sellers. Price is a ham-fisted signal that is only marginally better than rationing but without using it at all, or by using it poorly, government has opened the door for a private company to create a market in something valuable - parking turnover. Should this application take off (a big "if") government's only practical response is to raise the price of parking to the point that turnover is so high that you can usually find a parking spot quickly without paying somebody to leave. That will be a really high price which will obliterate the goal of providing access to parking for people regardless of their economic situation.