There had been growing concerns about the existence of valet company Luxe. However, all speculations have been answered now that automaker Volvo announced that it will buy Luxe.
Volvo is interested in the acquisition of the platform provided by the valet company, along with the technology, its staff and other assets. Sources have indicated that this move will help to strengthen the car maker’s own digital strategy.
There is no clarity on the terms of the acquisition, as they have not been disclosed yet by either entity. However, if we consider the previous round of funding that Luxe underwent, it has been valued at $140 million, post-money.
Luxe provides a service where any customer can drop off their car in any city where Luxe has its services, and a professional valet will ensure the car is parked in a parking lot. If requested, the valet will also refuel the car and even clean it.
From a team reshuffle at Luxe, CEO and co-founder Curtis Lee will become vice president of digital for Volvo Cars as an outcome of this acquisition. Moreover, the entire team at Luxe will be taking up various positions at Volvo, including Craig Martin, founder of Luxe. According to Lee, Martin will continue to lead the engineering team.
This is a critical move, considering that the industry is on the verge of a paradigm shift with automakers around the world investing into tech startups that are focused around cars and car assets. This will give a complete new dimension to car ownership and cars of various automakers.
If we look at the history of Volvo, it has evolved a lot. Volvo was initially a Swedish firm before Ford acquired it in 1999. It underwent a further acquisition by Geely Holding in 2010. The company has made an announcement that by 2019, all its cars will be either electric or have hybrid mechanism.
Volvo has a set up in the Silicon Valley, and Luxe’s team will join that group and continue their work. Speaking on this occasion, Atif Rafiq, chief digital officer at Volvo Cars, said, “Our vision is a future in which technology simplifies life so you never have to stop at a petrol station, go to a car wash or even take your car in for service ever again. The acquisition of Luxe is a step towards realizing that ambition. I look forward to working closely with the highly talented team at Luxe, who created its advanced technology from the ground up.”