Store your luggage in local shops, cafés and hotels. On-demand, easy to use, secure.
|Sectors||Travel, Leisure & Sport Digital Mixed B2B/B2C|
|Incorporation date||13 Apr 2016|
LuggageHero is a trailblazing luggage storage service that operates as a sharing economy concept. Our extensive network of luggage storage sites are located inside local retail shops, cafés and hotels that have extra space available. We call them luggage heroes.
By partnering with existing local businesses, we are able to offer luggage storage options all over the cities we operate in. Currently, there are more than 300 luggage heroes available in London, New York and Copenhagen, and collectively they have provided more than 500,000 hours of bag storage in the past 12 months alone.
Users find and book the nearest luggage hero through our mobile-friendly website (no need to download and install an app) and instantly receive directions to the location on their smartphone. The drop-off and pick-up processes are quick and easy, and payments are handled securely online. All luggage is insured against damage, loss or theft while in storage, with coverage up to €2,500 per bag.
It's a familiar predicament: you've got a few hours before you can check in to your vacation rental, and you want to start doing some sightseeing — but that means slogging along crowded sidewalks with your luggage in tow. Our mission is to solve that problem.
By utilizing existing space and resources of local businesses, LuggageHero is able to ensure that there is always a storage option close to where users need it. Our cost-effective solution, hourly pricing model and risk-free booking policy provides exactly the kind of flexibility and convenience that modern travelers have come to expect.
And this new concept doesn't only benefit travelers. Savvy local business owners now have a smart new way of attracting a strong consumer group to their establishments.
Substantial accomplishments to date
- More than 500,000 bag storage hours in 2018 alone.
- Average MoM (month-over-month) growth of more than 20% since January 2017.
- Achieved LTV:CAC ratio of 10:1 (appx. $10 of revenue generated per $1 marketing spend).
- Press coverage in New York Times, Forbes, The Lonely Planet, Boston Globe, Washington Post, Seattle Times, Evening Standard, TheSun, SF Chronicle, DailyMail.
2016 — Launched MVP (minimum viable product) in Copenhagen.
2016 — Showed initial traction with just 30 storage sites.
2017 — Developed full-fledged two-sided market platform.
2017 — Expanded to London with 50 new storage sites.
2018 — Expanded with over 100 new storage sites in New York City.
2018 — Reached more than 500,000 bag storage hours.
One of the many customer testimonials:
What a clever clever idea!.....and even I managed to click, book, find and pay for it all without messing it up and Im a chronic technophobe!....the store that stashed my bag in Spitalfields Market was ace too. Last Stop for the Curious got a £30 sale out of me, so its well worth any shop becoming a Luggage Hero member, if they have space. Highly recommended 😍— Laura Thornton via Facebook.
The LuggageHero business model is simple: users are charged by the hour (from $1/£1/€1) with a reasonable daily maximum + a handling fee (from $2/£2/€2). All prices are per bag stored. The revenue is split 50-50 with the businesses that own the storage sites.
It's free of charge for for businesses to join as storage partners, and in addition to the direct earnings from storing luggage, we believe this will also give our partners an opportunity to generate additional revenue from cross-selling to travelers.
Use of proceeds
With solid product-market fit and the current business model thoroughly proven in major cities like London and NYC, it's time to scale! Seedrs proceeds will go almost exclusively towards hiring of sales contractors, who will expand the LuggageHero network by signing on local businesses as storage partners in new territories.
Breakdown of how the funds are planned to be spent:
• Sales (new markets) — 70%.
• Marketing (online) — 20%.
• Product development — 10% *.
The business is close to break-even in the current markets, however, our strategy is to maintain fast-paced growth over the coming years. We have a well laid out plan to launch 36 new cities in 2019-2020, with the first tranche already on track to go live in Q2. With the growth that we are confident we can achieve with this funding in place, we are aiming for a positive EBITDA by the end of 2019.
* We focus heavily on innovation, but the majority of our product development for 2019 is already funded by other means.
Please note, Luggagehero currently has an outstanding loan of 4,000,000 DKK (Circa €535,848.25), which accrues interest at 9.067%. This loan was received in January 2018 and only has interest payable for the first 2 years of the term, payable quarterly. The interest and principal is then repayable from Jan 2020 onwards for 5 years, payable quarterly. Proceeds from this raise are not intended to be used to repay this loan.
Please note, reflected funds in this raise are originally in DKK and shown in € using the ECB reference rate for 11/04/2019, which is 7.4648 DKK per €. Any other funds in DKK invested as part of this raise will be reflected using this exchange rate.