Luggage Storage

Sharing economy luggage storage solutions allow travellers to roam ‘light’ even if they don’t pack ‘light’

December, 2020

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Industry Overview

​Historically, the luggage storage industry has been primarily associated with lockers at airports and train & bus stations. Short-term luggage storage used to be very fragmented and scarcely distributed in cities and usually associated with high costs and size restrictions due to space limitations and high real estate cost. These limitations have opened the market for new and disruptive business models.

 
 
 
 
 
The New Business Model

One of the first companies that challenged the status quo and introduced a disruptive new business model was Stasher in 2015. The idea is to start using existing un-utilised or under-utilised infrastructure such as storage rooms in hotels, shops, restaurants, etc. across multiple locations in cities around the world. This new business model, relying on sharing economy luggage storage solutions, has reduced costs and made the luggage storage more convenient due to lack of size restrictions, location network, digitised product offering and safety (some companies provide tamper proof seals and all of them provide insurance coverage).

Customers, Suppliers and Partners

Customers: Vacation rental travellers, travellers carrying special equipment (photographers, videographers, etc.)
Suppliers:  Airport restaurants, coffee shops, retailers and duty free operators
Partners: Online travel platforms, etc.

Risks

Covid-19

Covid-19 has severely disrupted the Travel industry. Startup companies' survival would depend on rate and shape of recovery (whether it would be an V-shaped, L-shaped or Tick-shaped recovery), government travel restrictions and appetite for travel. For the moment most companies are in a “wait-and-see” situation.

Demand for vacation rentals

The luggage storage industry's demand is heavily linked with demand for vacation homes. In the US there are signs that during the pandemic, vacation rentals are actually preferred to hotels, but in general, if demand for vacation rentals for any reason declines, there is the expectation that demand for luggage storage would be negatively impacted.

Figure 1: Investments in Luggage Storage companies

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Notes: The Parrot collects information from a variety of sources. The chart is based on public data for tracked companies for the period 2016-2020. Last updated Nov 2020.

Investments

Investments in luggage storage companies continue to grow as the new business model matures and proves successful. Some OTAs are showing particular interest in the field (for example Expedia) by mentoring and investing in luggage storage companies (Stasher).

Revenue, Costs and Margins

From a consumer point of view, price & convenience (which is often measured by location - whether a particular company have good coverage in the city) are the most important criteria when choosing a luggage storage provider. This customer demand for convenience pushes the luggage storage companies to go into more cities and sign more storage space providers.

Acquisition costs for signing new partners (storage spaces) vary from company to company and from city to city, but on average they are between 30 and 60 euro. 

Usually gross margins are around 50% - the other 50% goes to the storage space provider. The proposition is lucrative for the storage space providers as it is also generating secondary income, as around 70% of customers are buying other products when they store their bags (coffee shop and restaurants products, etc.).

Revenues are healthy with top 5 companies making more than £1.5M per year. Most if not all companies are not expected to be "in the black" in the medium term due to the nature of the industry (capturing market share at this stage is considered essential).

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Companies

Insight Parrot explores thousands of data points and is on the lookout for trends that shape the forward curve of your industry to help you navigate the ever changing travel landscape and harness the potential of unfolding opportunities.

Reviewed companies in this analysis:


| BagsAway | Bounce | EelWay | Holibag | Luggage Hero | Mind My Bag | Nannybag | Radical Storage | Stasher | Store me | Vertoe |

The Parrot collects information from a variety of sources. If you want to tell us about a new company, notice anything missing or any errors, please get in touch.

Companies

BagsAway

Insurance & T&C

Every order is insured for up to $1,200 damage and theft insurance per bag / Every bag is sealed, tagged & secured

Coverage

More than 30 cities (primarily in North America)

Pricing

$5.95 per bag per day

Founded

2017 in Toronto, Canada by Eugene Veeden, Irina Zusman & Katerina Pakman

Number of Employees

6

Funding

No available information

SWOT

Strengths
- Local solution - could be appealing to home country travellers

Weaknesses
- Does not have great coverage (limited locations). Good coverage in Vancouver, Canada, but somewhat limited coverage in other Canadian cities
- Website is not very appealing
- Does not have an app

Opportunities
- There is an opportunity to grow market share in local market (Canada) and cement their position

Threats
- Competitive threat from bigger competitors with more financing
- Decrease in vacation rentals

Companies

Bounce

Insurance & T&C

$5,000 insurance included / Security seals provided for max safekeeping / Free to cancel / Fragile Items (e.g. vases, fragile class items, art painting, photos, liquids etc) are prohibited

Coverage

More than 100 cities in North America. Planning to launch in ~40 European cities

Pricing

$5.90 per bag per day

Founded

2018 in San Francisco, USA by Cody Candee

Number of Employees

13

Funding

On 21/12/2018 completed a $1,200,000 seed funding round

Source: https://www.crunchbase.com/

SWOT

Strengths
- Good coverage in North America
- The good insurance coverage ($5,000) could be appealing to other customer segments - photographers, etc.
- App availability

Weaknesses
- No coverage for Europe or Asia
- No major investment rounds since 2018

Opportunities
- Opportunity to increase coverage in other countries and locations and gain market share
- Could use the USP (storing expensive tech) to target other customer segments

Threats
- Competitive threats from other luggage storage providers
- Decrease in vacation rentals

Companies

EelWay

Insurance & T&C

Luggage is insured up to 1,000 € / No specific limitations are provided

Coverage

400 cities worldwide

Pricing

From €10

Founded

2015 in Paris, France by Julien Alary, Fabien Coeur-Uni & Luca Ascani

Number of Employees

13

Funding

On 03/05/2018 completed a €1,600,000 seed round from Normandie Participations, NCI Gestion, Luca Ascani, Bpifrance, Axeleo

Source: https://www.crunchbase.com/

SWOT

Strengths
- USP - luggage pick-up and delivery is also available for additional fee
- Good coverage

Weaknesses
- Expensive compared to other companies
- No significant investments in the company since 2018
- T&C section could be clearer
- Does not have an app

Opportunities
- Opportunity to partner with travel benefits or hotel companies to increase market share (e.g. by delivering to hotel and storing skiing luggage for travellers)

Threats
- Competitive threats from other luggage storage providers
- Decrease in vacation rentals

Companies

Holibag

Insurance & T&C

Free cancellation up to 4 hours before the start of booking / No size limitations

Coverage

Only in Europe, mostly France

Pricing

11,90€

Founded

2015 in Le Petit-quevilly, France by Hoda Zaghouani

Number of Employees

5

Funding

No available information

SWOT

Strengths
- Very local - could be appealing to home country travellers
- App availability

Weaknesses
- Quite expensive compared to other companies
- Coverage is not great

Opportunities
- Opportunity to cement its position in France

Threats
- Competitive threats from other luggage storage providers
- Decrease in vacation rentals

Companies

Luggage Hero

Insurance & T&C

$3,000 per bag in North America, €2,500 per bag for Europe and £2,200 per bag for UK / There are no cancellation available / Luggage must not contain jewellery, cash, travel documents or similar valuables

Coverage

More than 40 cities limited to North America and Europe

Pricing

£8 / $8 / €8

Founded

2016 in Copenhagen, Denmark by Kristian Løkkegaard

Number of Employees

33

Funding

On 25/04/2020 completed a €400,000 equity raise for 2.23% equity through Seedrs platform

On 30/01/2019 a €1,500,000 capital investment round was completed by a group of Danish investment companies (Nordic Eye, Vækstfonden and Innovationsfonden

On 17/07/2017 completed a £300,000 pre-seed investment round from angel investors

Source: https://www.crunchbase.com/

SWOT

Strengths
- Good insurance policy ($3,000)
- Recent financing round through crowdsourcing (but the need to crowdsource could mean that they are cash-strapped)
- App availability

Weaknesses
- No cancellation policy
- A bit on the expensive side compared to other providers
- Coverage is a bit limited (40 cities)

Opportunities
- Opportunity to grow in other markets

Threats
- Competitive threats from other luggage storage providers
- Decrease in vacation rentals

Companies

Mind My Bag

Insurance & T&C

Free cancellation up with 48 hours notice / No specific examples such as electronics

Coverage

16 cities in Australia and New Zealand with plans for expansion in US and UK

Pricing

AUD$10 bag/day

Founded

2019 in Richmond, Victoria, Australia by David Plumridge

Number of Employees

1

Funding

No available information

SWOT

Strengths
- Very local - could be appealing to home country travellers
- Free cancellation

Weaknesses
- No available information about significant investment rounds
- Tiny Coverage - only 16 cities

Opportunities
- Opportunity to cement their position in local markets

Threats
- Competitive threats from other luggage storage providers
- Decrease in vacation rentals

Companies

Nannybag

Insurance & T&C

€1,500 per item / Free cancellation up until the time of booking / Excluded items: fragile items (e.g. vases, fragile class items, art painting, photos, liquids etc) / No height or weight limit

Coverage

More than 500 cities worldwide

Pricing

€6 / £6 / $6 / CA$10 per bag depending on country

Founded

2016 in Paris, France by Matthieu Ballester & Samir Senouci

Number of Employees

19

Funding

On 28/01/2020 completed a €2,000,000 seed funding round from Expon Capital and Fa Dièse

On 20/12/2018 issued convertible debt from Expon Capital

On 01/07/2017 raised more than €100,000 seed funds from WeLikeStartup

Source: https://www.crunchbase.com/

SWOT

Strengths
- Biggest company in terms of coverage
- Solid investment rounds
- Free cancelation up until time of booking

Weaknesses
- Limited coverage in Asia

Opportunities
- Expand in other markets

Threats
- Competitive threats from other luggage storage providers
- Decrease in vacation rentals

Companies

Radical Storage

Insurance & T&C

Each bag is covered by a 500€ guarantee not dependent on country / There are no size limitations / Cancellations and refunds are not available after booking

Coverage

More than 350 cities worldwide

Pricing

£5.00 / €5.00 / $6.00 / ¥600.00 per day depending on country

Founded

2016 in Rome, Italy by Alessandro Seina

Number of Employees

25

Funding

On 15/02/2020 Radical Storage raised €2,500,000 by VV2 and VV4 funds, managed by Vertis

Source: https://www.crunchbase.com/

SWOT

Strengths
- Good Coverage
- Good website with nice customer interface
- Solid investment rounds

Weaknesses
- Valuable items above €500 cannot be left to storage as anything above this amount is not covered by the insurance. That limits the customer segment as professional photographers, developers, and travellers carrying expensive equipment cannot leave it at storage
- The solution is also less flexible than some of the other options as no cancellations are possible. This could lead to a decrease in market share

Opportunities
- €2.5M financing round was completed in the beginning of 2020. The financing could be used to gain market share

Threats
- Competitive threat from other large luggage storage providers such as Stasher, Nannybag and Eelway
- Decrease in vacation rentals

Companies

Stasher

Insurance & T&C

Each bag is insured for up to £1,000 not dependent on country / Cancellations and refunds are available before the drop-off time

Coverage

More than 250 cities worldwide

Pricing

£6.00 / $6.00 / €5.00 / CA$8.00 / A$8.00 / ¥800 per bag

Founded

2015 in London, UK by Jacob Wedderburn-Day & Anthony Collias

Number of Employees

21

Funding

On 21/01/2020 completed a €2,250,000 funding round led by Venture Friends

On 14/11/2019 completed a $1,700,000 funding round

On 03/01/2018 completed a $1,100,000 funding round led by Venture Friends

On 12/12/2016 $100,000 angel investing from James Gibson

Source: https://www.crunchbase.com/

SWOT

Strengths
- One of the first (if not the first) luggage storage company
- Good relationship with big brands such as Expedia and have won Expedia's accelerator programme (HotelJumpstart 2018)
- Good coverage
- Solid investment rounds

Weaknesses
- Limited coverage in Asia

Opportunities
- Opportunities for growth in other markets

Threats
- Competitive threats from other large luggage storage providers (such as Nannybag)
- Decrease in vacation rentals

Companies

Store me

Insurance & T&C

Insured up to $3,000 per booking (not per item) / Free cancellation until time of booking

Coverage

12 cities in USA and Canada

Pricing

$7.50 or $14 per item depending on size of luggage

Founded

NYC, USA by Peter Korbel

Number of Employees

2

Funding

On 26/07/2018 raised equity crowdfunding $112,000

On 15/01/2018 completed a seed round for $50,000

On 15/12/2017 completed a seed round for $50,000

SWOT

Strengths
- Luggage pick-up and delivery (in NYC only)

Weaknesses
- No significant investment in the company since 2018
- Coverage is limited to US and Canada and has only 12 cities

Opportunities
- Opportunities to grow in the US and take advantage of local market knowledge

Threats
- Competitive threats from other luggage storage providers
- Decrease in vacation rentals

Companies

Vertoe

Insurance & T&C

Tamper Proof Security Seals (free of charge) / $5,000 Insurance (for the booking) / There is no size limit, however the locations have the right to request that an item that weighs more than 75 lbs or 35 kgs to be charged as two items, or may reject to store it

Coverage

More than 50 cities worldwide

Pricing

AUD 7.95 / €5.95 / $5.95 / CAD 7.95 / £5.95

Founded

2016 in NYC, USA by Sid Khattri & Neha Kesarwani

Number of Employees

18

Funding

On 12/12/2019 completed a $2,000,000 convertible debt from ff Venture Capital

On 18/10/2018 completed a €1,850,000 seed round from ff Venture Capital

Source: https://www.crunchbase.com/

SWOT

Strengths
- Good security and insurance coverage
- Solid investment rounds

Weaknesses
- Smaller coverage than other luggage storage providers

Opportunities
- Grow in the US and take advantage of local market knowledge
- Explore other markets

Threats
- Competitive threats from other luggage storage providers
- Decrease in vacation rentals