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Valet parking startup Luxe latest casualty of on-demand bust

September 13, 2017

by Heather Somerville : reuters – excerpt

SAN FRANCISCO (Reuters) – Only a couple of years ago, billions of venture capital dollars were flowing into so-called on-demand businesses that hoped to mimic Uber Technologies Inc and provide a service at the touch of a smartphone app.

But the demise last week of valet parking company Luxe, which followed the collapse of three of its competitors, shows the brutal economics of on-demand services and raises questions about the viability of the concept.

Luxe raised $75 million and reached a valuation of about $160 million as investors competed to back on-demand startups in everything from restaurant take-out to health care and home repair.

“From a fundraising standpoint, ‘Uber for X’ was the attractive thing,” said Sean Behr, the chief executive of Zirx, another now-defunct valet parking company… (more)

Drivers are less inclined to play a parking games than some at SFMTA would have us believe.

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