Luxe is in talks with a strategic investor that will infuse the company with “tens of millions” in new financing from Hertz, our sources tell us. Our understanding is that the round is still in negotiations — and, of course, could change at any time — but one source says the round could be as high as $50 million.
The Information reported that the funding round is coming from Hertz at a more than $100 million pre-money valuation. This round, according to our sources, has been in the works for a while — as far back as last quarter when it seemed that it would not be able to close a new round of financing.
Luxe offers customers on-demand parking on both a subscription and one-off model for a fee. It’s available in markets like San Francisco, Miami, Los Angeles and New York. The play here is that these cities are so congested that parking is a pain for drivers to the point that they’ll be willing to pay up for someone else to park their car. From what we understand, the subscription model is quickly becoming one of its largest growth-drivers, and the company may be putting more emphasis on that.
Luxe’s on-demand parking model has come under a lot of scrutiny given the end of ZIRX’s consumer-facing parking service. However, we do hear from our sources that the company isn’t doing too badly in the San Francisco market, which might be why the company was able to secure a new round of financing — even from a strategic investor like Hertz.
Luxe has raised $25.5 million in financing prior to this round of funding.
We’ve sent a request for comment to Luxe and will update the story when we hear back from them.
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