Funding Investment

Luxe, an on-demand valet service, raises $50 M from Hertz

It looks like old dogs can learn new tricks. Hertz, one of the oldest car rental companies in the world, has just thrown its hat in with an up and coming startup: Luxe. According to Biz Carson, of Business Insider, “Hertz just made a $50 million strategic investment in Luxe, a San Francisco-based startup that makes it its job to handle the parking for you.”1

In a nutshell, the company works kind of like Uber. As you are arriving at your destination, the app can track your movement, and have a valet waiting to park your car. What’s more, the company also provides several ancillary service like washing your car or filling it up with gas.

Luxe CEO Curtis Lee explained the move in more detail to Business Insider:

Renting a car isn’t the easiest thing in the world, and especially when you rent a car and go into a city or metro area, not being able to find parking and having to find gas especially when you don’t know the city well is a challenging experience…And those are the perfect use cases that customers use Luxe for right now.2

Hertz CEO John Tague also weighed in on the investment to Business Insider:

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…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.3

Luxe has proven itself able to sustain profits while its competitors have rapidly shuttered. Obviously, they are doing something right to attract investment from one of the longest standing car rental companies.