On-demand valet service Luxe, which last year was valued at more than $100 million by investors like Hertz, has quietly "paused" its service in Los Angeles and Austin. This comes a couple of months after it shuttered service in Seattle, and as the San Francisco-based company works to rebut additional parking options.
As a result, it's laying off employees in those cities, as well as some employees who are part of its central operations, such as customer service reps, said co-founder and CEO Curtis Lee.
Why it matters: So-called "on-demand" companies exploded in popularity a few years ago, but many have since learned that it's no easy business. Several have shut down or significantly adjust their models, including some of Luxe's competitors.