Today LuxeValet is launching out of beta in San Francisco and we are excited to announce our investment in the team. We are proud to back founders Curtis Lee and Craig Martin on their mission to transform a daily, painful experience like parking into one that gives people joy by letting them quickly and safely leave their car and get on with their day.
We were impressed by LuxeValet’s veteran team who saw an opportunity to transform the $25B annual parking business with an on-demand, valet-driven model. The team brings engineering, product and operations experience from Zynga, Groupon, Tesla and YouTube and has developed a sophisticated platform that makes the city parking process easy, efficient and affordable.
The parking problem in San Francisco, as with most cities, is awful by any measure. The median price to park in a San Francisco city lot is $29/day and $375/month. In some neighborhoods, parking meters charge as much as $7/hour during periods of high-demand. Last year, 70,000 cars were towed in San Francisco and it costs at least $400 to get a car back. Instead of dealing with that hassle and cost, at the press of a button, a LuxeValet will meet you in front of your next meeting to take your car and park it in one of their secure spots for $5/hour and $15 max.
The LuxeValet team has been building the technical and operational foundation of the company for the past 18 months. LuxeValet has a fleet of pre-screened valets in bright blue jackets and dozens of insured and secure indoor parking lots all over the city. This allows them to deliver a great consumer experience at the push of a button. The valet experience also allows them to deliver one of my favorite features which is the LuxeValet will fill up or wash your car while you spend time with your family or attend your meeting.
Even more interesting are the economic advantages that happen to the model at scale. By obtaining parking spots en masse, LuxeValet brings down the price of spaces, making it the same cost and many times less than a traditional lot, while delivering a much better experience. Like most marketplaces this also has great network effects: more users mean keeping more valets busy, which means the valets make more. More riders mean more parking spots and lowered costs for the spots themselves.
We love these type of marketplace investments that reward each player in the virtuous cycle and are perpetuated by an amazing consumer experience.
Congratulations to the entire Luxe team from your friends at Redpoint. We’re excited to be along for the ride.