If you've spent any time in San Francisco, then you know traffic is bad and parking is even worse.
According to a new company named Luxe Valet, drivers in San Francisco now spend an average of 20 minutes looking for an available parking spot. So, born of his own frustration, Luxe CEO Curtis Lee got an idea.
"I live in San Francisco," Lee told CNBC. "I own a car, and I realized that a lot times, there wouldn't be a great way to get from Point A to Point B. I'd just be circling around the block."
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In response, Lee created Luxe Valet, which officially rolled out in San Francisco this week.
Here's how it works: Download the app and then order a valet, who comes and parks your car. When you're ready to leave, just say where you want to get picked up. The service costs an average of $5 per hour with a max of $15 per day.
Luxe Valet recently raised over $5 million from Google Ventures, among others. But on-demand parking is already becoming a competitive industry. There's also Zirx in San Francisco, ValetAnywhere in New York City and Caarbon, which is being tested now in the Bay Area.
Still, Lee is confident in his business, and plans to use that $5 million to beef up his staff and expand. New York City, Philadelphia and Chicago have big potential, he says.