In February it was rumored that Luxe could be raising a new round of funding from Hertz, and today that was confirmed.
Luxe, perhaps the strongest of its competitors, just announced a Series B financing of $50 million from lead investor Hertz Global Holdings. Existing investors, including Redpoint Ventures and Venrock, also contributed to the raise.
As part of the deal the CEO and president of Hertz Global Holdings has joined Luxe’s board of directors.
“Our investment will support Luxe’s ability to scale its successful service to other major urban centers, while offering our customers enhanced convenience and value with regard to their urban parking needs,” Tague said today in the press release. “Building on an expanded Luxe footprint and capability, we will partner together to develop new innovative and integrated services that will enhance the relevancy of our core products in urban markets.”
Luxe plans to use the new capital to improve upon its operations, engineering, product and valet teams with the goal of providing a superior customer experience. They also mentioned the possibility of introducing new complementary services to their bread and butter valet operations.
Luxe’s Funding Raises Parking’s Profile
As a parking operator you’re probably wondering how Luxe’s parking partners will grow as a result of the increased capital.
For one thing, CEO Curtis Lee says, “Our mission has always been to make car ownership as painless and easy as possible.” If nothing else, the parking industry as a whole will benefit from Luxe’s support against the rise of ride-sharing and alternate forms of transportation.
The attention of both consumer and tech media outlets is raising the profile of parking among the larger transportation industry.
“This milestone is great news for the entire Luxe ecosystem,” Lee said exclusively to ParkingExec. “Specifically for our parking partners this means that we will be able to invest further in creating demand and awareness among consumers looking for on-demand parking and car services, to try Luxe. The more demand we have and the required inventory to service it, generates more business for our parking partner network. And with Hertz behind us, comes even more opportunity in the near future to surface new customers, who are visiting from out of town and using rental cars that need parking and car services too,” said Lee.
Luxe currently operates in San Francisco, Los Angeles, Seattle, Austin, Chicago and New York – with plans to expand.