Bounce - Luggage Storage Where Ever You Go

Company & Team Introduction

Bounce is the largest network of luggage storage locations in the world. The company connects local businesses with unused space and travellers looking for a secure place to leave their luggage. The company was founded by Cody Candee in 2018, a former Intuit product lead who led a team of over 50 people, scaling products to 10M+ users and driving $10M+ in incremental revenue. He left the company in 2015 to explore personal projects and travel the world. After leaving Intuit, Candee spent a few months at a venture studio trying new ideas before departing to backpack across Southeast Asia. He then spent time investigating the local startup ecosystem in India before returning to NYC to start Bounce. With a mission to “free everyone from their physical belongings,” Bounce is transforming how we travel; tourists no longer have to drag their luggage around all day through a layover city before that 8pm flight home. Bounce is headquartered in San Francisco, California and has grown its team to ~112 employees.

Product Overview

Bounce has two main offerings. The flagship product is their luggage storage offering, which has turned Bounce into the company it is today. Bounce luggage storage allows travellers to leave their belongings at local hotels and shops in any neighbourhood, allowing them to escape the hassle of hauling their luggage wherever they go when they travel. To use Bounce, customers simply go to their mobile app or website and enter their location to find available spaces nearby. Once they’ve chosen the best space for them, they can instantly book online and head to the area. When dropped off, bags are equipped with an ID tag, Bounce security seals and are stored safely. All luggage secured through Bounce is insured for $10,000 in damage protection. The company’s newer product, package acceptance, allows customers to get all their parcels delivered to one central location nearby, no matter who is shipping it. No more missing packages because you were at work and then having to chase them down across the city, stopping at several different points and waiting in line for something that’s already paid for and yours. As packages arrive, customers are notified via the Bounce app. Bounce also offers flexible pickup hours, so customers can get their packages whenever it’s convenient for them, and some locations even provide 24/7 pickup. Bounce also has 24/7 customer support should any problems arise.

Total Addressable Market

Bounce’s novel product caters to a massive industry, global luggage storage. According to research from marketresearchintellect.com, the market opportunity is already sizeable, estimated to be worth up to $14.6B in 2024. In addition to Bounce’s already enormous opportunity, the industry should see a healthy CAGR of 9.83% through 2031, increasing their potential TAM to an impressive $30B+.

Business Model & The Numbers

The company operates with a transactional marketplace business model. Bounce takes a percentage of revenue generated through the platform, typically around 50%, but this varies per location. Bounce allows hotels and shops to generate an additional income stream and increase foot traffic. According to data from LeadIQ, Bounce has revenues in the range of 10 to 50 million dollars. The company’s revenue-sharing model has driven tens of millions of dollars in additional revenue to local businesses they would never have the chance to earn without Bounce. Candee released in May this year that the company had grown 20x over the past two years.

Traction

Bounce has gained significant traction in the US and internationally (45% in 2021) and has a strong SEO strategy that drives large amounts of traffic to the company. On the supply side, Bounce now offers storage in over 10,000 locations and 2,000 different cities in 80 countries worldwide. On the demand side, Bounce has served millions of customers worldwide and has received a 4.5-star rating based on over 560,000 reviews.

Competitors

As with any other massive market opportunity, the competitive landscape for Bounce is cutthroat. In addition to Bounce, the leading players in the industry include two other VC-backed startups, LuggageHero and Stasher. Still, several key advantages position Bounce well to maintain its status as a market leader. First, the company has built the most extensive network of hotels and shops, with over 10,000 locations worldwide, compared to LuggageHero at 1,000 locations and Stasher at 5,700. The more locations on the platform, the higher the chances a user will find a location nearby. For security precautions, Bounce places a luggage ID tag and tamperproof seal on all items, whereas LuggageHero places a security zip tie, and Stasher only puts a luggage ID tag on bags. Another advantage of Bounce is that it offers the highest insurance coverage of the three startups. Bounce offers $10,000 protection insurance for $1.65 if anything were to happen to the luggage, LuggageHero only insures $3,000 for $1.90, and Stasher offers $1,000 in coverage for $2. Regarding pricing per bag + insurance (required), Bounce is $7.55/bag/day insured for $10,000, Stasher is $7/bag/day insured for $1,000, and LuggageHero is $7.25-9.95/bag/day insured for $3,000. Bounce also has the highest-rated service per customer reviews.

Funding

According to Crunchbase, Bounce has raised four rounds of funding, including a series of seed rounds, before raising their Series A. The company's first round of funding came in December 2018, raising $1.2M from investors such as Seabed VC, Rob Chesnut (ex-eBay, Chegg), Michael Hyatt (Co-Founder/CEO, Blue Cat), and Jillian Manus (Managing Partner, Structure Capital). The following funding event was in late 2020 when the company received an additional undisclosed investment from Seabed VC. In December 2021, the company raised an additional undisclosed amount of funding exclusively from notable VC firm General Catalyst. In April 2022, Bounce announced they’d raised a $12M Series A round spearheaded by Andrew Chen from Andreessen Horowitz and a follow-on investment from General Catalyst among participants in the round.