Volvo Cars buys Luxe assets in digital consumer experience push
Volvo Cars buys Luxe assets in digital consumer experience push
Volvo Cars, the premium car maker, today announces the acquisition of the platform, technology, key staff and other assets of Luxe, a US based premium valet and concierge service. This acquisition provides Volvo Cars with a major boost in the development of digital services that simplify consumer experience.
The advanced software and technology platform as well as key data scientists, app developers and software engineers currently employed by Luxe will join Volvo’s digital organisation in Silicon Valley.
The Silicon Valley office provides an additional centre of gravity for Volvo Cars’ efforts in building digital products and services for its global business across Europe, Asia, and the Americas. For example, it was deeply involved in the development of a pilot program for on-demand refuelling for Volvo owners in San Francisco.
“Our vision is a future in which technology simplifies life so you never have to stop at a petrol station, go to a car wash or even take your car in for service ever again. The acquisition of Luxe is a step towards realising that ambition. I look forward to working closely with the highly talented team at Luxe who created its advanced technology from the ground up,” said Atif Rafiq, Chief Digital Officer at Volvo Cars.
The acquisition of the Luxe platform is expected to considerably accelerate Volvo Cars’ ability to offer digital customer experiences such as pick-up and drop-off services, adding a new level of convenience for Volvo owners. More specifically, the technology behind Luxe provides the company with advanced algorithms in the areas of routing, logistics planning and arrival time prediction.
“As more and more of our cars are connected, the availability of digital services becomes a critical part of the process of selecting a new car. Simplification of experience and placing control directly into the hands of the consumer is what today’s technologies enable, and what defines our vision in the digital space,” said Mr Rafiq.
Silicon Valley-based Luxe has operated previously in a select number of major US cities, including San Francisco, New York and Chicago. The service allowed drivers to drop off their car at any point in the city, where a professional valet took care of finding a secure parking spot, as well as fuelling and cleaning the car if the customer desired.
No financial details of the transaction will be disclosed.
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Volvo Car Group in 2016
For the 2016 financial year, Volvo Car Group recorded an operating profit of 11,014 MSEK (6,620 MSEK in 2015). Revenue over the period amounted to 180,672 MSEK (164,043 MSEK). For the full year 2016, global sales reached a record 534,332 cars, an increase of 6.2 per cent versus 2015. The record sales and operating profit cleared the way for Volvo Car Group to continue investing in its global transformation plan.
About Volvo Car Group
Volvo has been in operation since 1927. Today, Volvo Cars is one of the most well-known and respected car brands in the world with sales of 534,332 cars in 2016 in about 100 countries. Volvo Cars has been under the ownership of the Zhejiang Geely Holding (Geely Holding) of China since 2010. It formed part of the Swedish Volvo Group until 1999, when the company was bought by Ford Motor Company of the US. In 2010, Volvo Cars was acquired by Geely Holding.
As of December 2016, Volvo Cars had over 31,000 employees worldwide. Volvo Cars head office, product development, marketing and administration functions are mainly located in Gothenburg, Sweden. Volvo Cars head office for China is located in Shanghai. The company’s main car production plants are located in Gothenburg (Sweden), Ghent (Belgium), Chengdu and Daqing (China), while engines are manufactured in Skövde (Sweden) and Zhangjiakou (China) and body components in Olofström (Sweden).