As someone who owns a car and lives in a city, I routinely find it hard to find a parking spot and spend unnecessary time circling blocks in search of a coveted spot. And when I do find a spot, I often end up getting a ticket or paying exorbitant garage rates. Our latest investment in Luxe (http://luxevalet.com/) solves this problem! Luxe is changing the parking experience for consumers in cities, and a major reason for their early success is due to vertical integration. In fact, Luxe isn't really a valet service at all, but rather a full-stack parking solution.
How does it work?
The product provides consumers with on-demand parking via their valets and partner parking garages. In addition to parking your vehicle, Luxe also offers premium add-ons such as a car wash and fueling up your vehicle for additional fees. The service itself is intuitive and easy. Users simply download the app and request where they would like to drop their car off. A valet then meets them at the designated spot, wearing an easy to identify bright blue uniform. The valet then takes over, addresses you by name, and verifies their identity as a Luxe employee. You can track your car as it goes from the drop off point to its parking spot.
In addition to providing a great service to consumers, Luxe saves consumers money. With parking rates in congested downtown areas pushing $50 per day, Luxe's maximum fee is only $15. Not only do they meet you anywhere in their service area for pick-up, but you can also schedule your car drop-off the same way. So, have the valet meet you at work in the morning, and then meet you off-site when you are done entertaining clients or are finished with a dinner meeting. Luxe takes convenience to the next level and does so in a cost-effective manner while saving consumers their most precious asset - their time.
While many people in Silicon Valley believe that car ownership and car usage is going down, it is actually increasing in North America as well as the rest of the world. In fact, automobile sales are on the rise, 2.5 percent globally, and if this trend continues, the need for parking will become more critical. Circling the block in the morning could leave you late for an important meeting, while paying for a monthly parking spot can be very expensive for those who need ready access to downtown areas. As a full-stack parking solution, Luxe takes the guess work and anxiety out of parking.
Full Stack Integration Builds Trust
As a consumer, you don't want to worry about dealing with multiple vendors for a finished product, and the demand for end-of-line services is on the rise. For example, consider major tech players like Apple. Their vertical integration model of controlling the finished product has made them a top player in the consumer electronics industry. By maintaining quality standards, they have created trust among consumers that other businesses struggle to emulate. This same model applies across other industries, and Luxe hopes to prove it in the parking industry. By taking control of the pick-up and drop-off of cars, they take control of the entire parking equation and offer a full-stack solution.
By leasing under-utilized parking spaces, Luxe ties in the vertical with contracted spaces through alternative parking lots. Working with parking authorities to find and utilize spaces that would otherwise remain empty, Luxe manages to negotiate contracted rates that allow them to turn a profit. This is an example of vertical integration that creates added value for both parts of the service provider equation - the parking company earns more on empty spaces, while Luxe uses their contracted rates to determine cost levels and turn a profit based on predictable expenses.
Just The Beginning
Luxe is currently live in San Francisco, Los Angeles and today the company announced that the next three cities will be Chicago, Boston, and Seattle with more cities to come as they look to continue to rapidly scale the business. The company has also announced the release of their Android app, feel free to download it here. Luxe is just getting started on their journey and if you are excited about solving the parking problem and solving problems with tremendous amounts of data, shoot me an email (firstname.lastname@example.org). The team is looking to make hires across the board. Feel free to use my invite code: RICHARD26 to take your first ride for free. Now you have no excuse to not give Luxe a try!
If you would like to read the company's announcement, which has an awesome infographic of their growth you can see it on the Luxe Blog.