A major aspect of commercial transactions in Texas and globally involves the acquisition of business entities by other entities. In such business transactions, big companies often buy smaller companies, or a specialized segment of another company, to fill a perceived void in the purchaser’s business plan. Thus, for example, Volvo recently purchased a valet parking startup called Luxe to parlay parts of the smaller entity’s digital capabilities into its own marketing needs.
Luxe allows drivers to order an instant valet to come and park one’s vehicle, and to apparently make it available at the end of a business meeting or other function. The idea, however, did not take off commercially, due partly to the domination of Uber in the world of online transportation needs. The startup had raised $75 million in investment funding and was valued at $110 million.
The startup, however, was struggling until the Volvo move gave it new life energy. The owners and employees of Luxe will end up under the Volvo umbrella going forward. It is interesting that Volvo does not intend to go into the online valet ordering business by this purchase.
The carmaker intends to expand its Silicon Valley office, with a primary focus on digital products and services. One program, for example, is set up to refuel Volvos on demand in the San Francisco area. Volvo admitted to purchasing Luxe for its “advanced algorithms” pertaining to routing, logistics preparations and predicting arrival times.
Volvo expresses a long-term vision of allowing owners the luxury of gassing up, getting a car wash, and even obtaining vehicle servicing through digital simplification of the consumer’s life. That worthy goal for the transformation of consumer and business transactions would be compatible with so many other on-demand services that are springing up. Through technological innovations, many companies, including some in Texas, now offer financial services, consumer products, food and other essentials to be delivered straight to the consumer’s location for immediate satisfaction of the purchaser’s digital order. Business law attorneys are an integral moving part in the process of completing the business purchase of one company, or part of it, by another.
Source: businessinsider.com, “Nearly-dead valet startup Luxe has been acquired by Volvo“, Becky Peterson, Sept. 8, 2017