Uber is considering an 'acquihire.'
Uber is in talks to acquire much of the engineering team from an on-demand car valet startup, Luxe.
On Wednesday, the ride-hailing giant was interviewing some employees of Luxe’s 60-person staff to determine who would join the company as part of the “acquihire,” according to the Wall Street Journal.
Luxe, a four-year-old San Francisco-based startup, allows users to request valets through an app who would park their car at a discount. It’s raised more than $75 million in venture funding from investors including Hertz, Venrock, and GV.
But it doesn’t seem like the company has performed particularly well. Earlier this year, Luxe shut down its Seattle operations and “paused” its service in Los Angeles and Austin, laying off a number of employees as a result.
The terms of the potential deal are not public, but it’s been reported that Luxe would only sell portions of the business and retain its brand. Luxe CEO Curtis Lee will not join Uber as part of an acquisition, according to Recode.
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Last year, Uber acquired A.I. startup Geometric Intelligence for an undisclosed amount, and autonomous transportation company Otto for $680 million. However, it’s important to note that Uber may not be Luxe’s only suitor, according to Axios.
The talks of an acquisition come at a time when Uber is dealing with internal turmoil following sexual harassment and discrimination allegations against the ride-hailing company.