The short-term luggage storage market is consolidating, with LuggageHero - one of PhocusWire’s Hot 25 Startups for 2019 - acquiring one of its competitors, Knock Knock City.
Terms of the deal have not been disclosed, but the acquisition was first tipped at Phocuswright’s Battleground competition in July, where Knock Knock City pitched.
Copenhagen-based LuggageHero will acquire all of Knock Knock City’s assets, people and storage locations, LuggageHero founder and CEO Jannik Lawaetz says, and former Knock Knock City locations, all based in the United States, will take the LuggageHero name.
With Knock Knock City, LuggageHero will expand its reach in the U.S. and plans to leverage existing partnerships Knock Knock City has with property management-type companies, including Guesty, Makomi, STRB and Victoria Prime; Knock Knock City also has a to-be activated agreement with apart-hotel brand Domio.
Launched in 2016, LuggageHero currently operates in 26 cities across Europe and North America and has plans to add 15 locations by early 2020. At each of its storage locations, which include retail outlets, cafes and hotels, travelers can book storage space by the hour.
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The company says its customers have logged more than one million hours of bag storage at more than 1,000 drop-off points. In February, it raised $1.45 million in funding, putting its total funding to date at more than $2.25 million.
“Knock Knock City offers an exciting opportunity for LuggageHero to expand and strengthen its network of on-demand luggage storage locations in as many cities as possible,” Lawaetz says. “As we grow, we will want to build more third-party relationships, an area Knock Knock City has excelled in.”
Knock Knock City co-founder and CEO Selin Sonmez will join LuggageHero as country manager for the U.S. and Canada, and co-founder Nikolaos Georgantas will become partner manager for LuggageHero shops and partnerships in North America.
“LuggageHero’s acquisition gives our consolidated business a major growth opportunity and extends our services wider and deeper. As the on-demand short-term luggage storage business matures, we will be well-positioned to give our customers the best service available,” Sonmez says.