When we set out to change parking by launching Luxe, we made a commitment to provide the best-in-class service to our customers. Our goal with every interaction is to impress our customers when their car is whisked away and seamlessly returned with the tap of the button. As we grow, we have realized the need to assert more direct control over the customer experience and provide our valets with career development opportunities and benefits – none of which are possible within the boundaries of the 1099 model.
To further deliver a consistently great experience for our customers and to provide more opportunities to our valets, today we are announcing that we will begin transitioning our valet workforce from 1099 contractors to W2 employees immediately.
By making sure that our valets have the opportunity to train on customer service, policy, process and safety – and by offering career development opportunities available only to direct employees – we will be able to own a consistent and seamless end-to-end customer experience.
As part of this change, Luxe valets will continue to have flexibility and be able to choose the number of hours they will work based on availability. Further, we will now pay for work-related expenses such as phone usage, jackets, and other work-related equipment. Employees will also receive benefits such as health (if full-time) and be covered for workers compensation, overtime, unemployment insurance, Social Security and Medicare taxes. To support this effort, we will be introducing a $1 valet care fee per transaction.
We hope you are as excited as we are for this change and we look forward to sharing more on this journey in the coming months.