Geely-owned Volvo has some big announcement this week. Volvo has announced plans to acquire Luxe, a U.S.-based car valet start-up, for an undisclosed amount.
According to TechCrunch, Volvo Group has just acquired Luxe to boost its digital car services. However, the financial details of the transaction were not disclosed to the public.
Why Volvo acquired the startup
As mentioned earlier by The Verge, the deal will give the automaker the resources to further its ambition of making life easier for Volvo car owners, which include some common vehicle services.
Volvo is currently working on a new vehicle service that can be controlled through Volvo-branded mobile apps.
The Geely-owned automaker has already rolled out some pilot programs to act as a concierge service to its customers in some European cities. For example in some cities in Sweden and Switzerland, Volvo has teamed up with local parcel delivery firms to allow customers to have their packages left in the trunk of their Volvo vehicles.
Last year, Volvo introduced the Volvo Concierge Services in San Francisco. That service allowed the customers to have their cars fueled or washed while parked at home or office. Volvo is currently beefing up its digital car services.
The Luxe news comes at a time when the automakers are busy buying assets of car-focused start-ups to help with their car development.
The car-focused start-ups of the Silicon Valley are getting more attention these days. Some big automakers are getting some investments on transportation-on-demand start-ups and self-driving technology. Others are joining forces to acquire large mapping and navigation companies.
About Luxe
Founded in 2013 and based in San Francisco, California, Luxe is an on-demand valet parking and car services app that makes owning a car more simple and addresses a ubiquitous urban challenge, car parking.
The company offers the free Luxe mobile app, which provides a secure indoor parking lots and sophisticated technology platform that monitors every step of the car services, from drop-off to pick-up. The Startup is currently leading the charge when it comes to new fast-growing market of on-demand car services, according to startup profiler CrunchBase.
Before its deal with Volvo, Luxe has raised $50 million in its Series B funding round led by Hertz. To date, Luxe has raised a total of $75.5 million in venture capital fund. Luxe’s investors include Alison Pincus, Amitt Mahajan, Arjun Sethi, Box group, Cherubic Ventures, Daniel Curran, Data Collective, Dave Morin, David Tisch, Eniac Ventures, Foundation Capital, Fritz Lanman, GV, and Hertz.
About Geely
Founded in 1986 and based in Hangzhou, China, Geely Automobile is a Chinese multinational automotive company that manufactures and markets engines, passenger and motorcycles under the Geely, Volvo, and Lynk & Co brands.
The Chinese multinational company also owned the iconic Swedish automaker Volvo since 2010, when it bought the Swedish automaker from original German owner, Ford.
Additionally, Geely also owned the London-based Taxi maker, The London Taxi Company. In addition to Volvo and The London Taxi Company, Geely also owned the Australian-based Drivetrain Systems International, a leading transmission developer.
