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Valet payment app Curbstand has just raised $3 million from an undisclosed private investor. The app, which allows users to tip and make payments, was launched in 2013, and currently is only available in Los Angeles. Curbstand has now raised a total of $4 million in funds.
The app has a geo-location feature to help users find valet stands and a credit-card linked payment feature, so users can avoid paying with cash. Since launching a little less than a year ago the app has demonstrated steady growth in Los Angeles. The company said it is now used at 125 stands across the city and is adding five to 10 locations each week.
True to its Los Angeles origins the app has been used at several celebrity events, including two parties hosted by Paris Hilton. Several nightclubs use the app, such as Project LA, Nic's Martini Lounge, The Victorian and Supperclub LA. Restaurants using the app include Osteria Mamma, Wolfgang's Steakhouse, Philippe Chow, Sugarfish, Malibu Cafe, and El Compadre.
"The funding will accelerate the expansion of our sales, business and product development teams, along with our plans to offer our services to even more valet locations in Los Angeles and speed up our roll out into new markets nationwide," said Serge Gojkovich, CEO of CurbStand in a statement. "We're already demonstrating rapid growth in L.A. and we have plans to unveil our app in six major U.S. cities within the next 12 months, as well as bring new, groundbreaking features to our users."
At this point Curbstand doesn’t charge a fee to valet services. It is unclear if they have plans to do so in the future or will try to make money by another method. Taking a portion of the valet fee seems like the most straightforward revenue model, and if that is the route Curbstand chooses it will need much bigger volume to make itself into a viable business- hence, the expansion into new cities.
Curbstand will also have to face down some completion in the space including an app called Valet Up, several backend valet management systems, which could add a customer interface, and Zirx, a San Francisco-based app company that will valet your car anywhere, not just at select stand locations.
Curbstand is currently available on iOS.
