Though a handful of smart luggage startups have shut down recently after several major airlines instituted new regulations in December 2017 that ban lithium ion batteries from being checked in an aircraft’s cargo, one Chicago smart luggage startup has been able to avoid the turmoil.
Modobag, founded by Boyd Bruner and Kevin O’Donnell, makes a motorized piece of carry-on luggage. With collapsible footrests and handlebars, Modobag can be ridden up to 8 mph for 6 miles on a single charge. It can accommodate riders up to 260 lbs and offers 2,000 cubic inches of packing space.
And unlike other smart luggage products that are powered by lithium ion batteries, which are susceptible to overheating and can cause fires when in the cargo compartment of an aircraft, Modobags run on carbon-free titanium-based batteries. Additionally, they can be removed, making them completely compliant with the new regulations, which require lithium batteries to be carried in carry-on baggage only, and removed from the bag and kept with the passenger in the aircraft cabin in the event the bag has to be checked.
“The reality is, there’s smart luggage and then there’s smarter luggage,” said Tim Ryan, Modobag's chief marketing officer. “We haven’t been impacted because our product adheres to the new regulations. Our battery is removable and has been since day one.”
Bluesmart and Raden, two New York startups that made lithium battery-powered smart suitcases, closed operations in May, blaming their demise on the changed airline policies.
Bluesmart, whose luggage’s battery couldn’t be removed at all, retailed on Amazon for $490. As part of their closure, they sold their intellectual property to Boca Raton, Florida-based Travelpro.
“After exploring all the possible options for pivoting and moving forward, the company was finally forced to wind down its operations and explore disposition options, unable to continue operating as an independent entity,” the company wrote on its website. “This represents a very unfortunate outcome for everyone involved, and we are all very sorry for this unexpected turn of events.”
Unlike Bluesmart though, Raden’s luggage battery was removable, but because of new negative perceptions surrounding smart luggage in general after the airline policies went into effect, business suffered and they were ultimately forced to shut down.
Back in Chicago, Modobag aims to avoid a similar fate. The startup says it reached out to its customer base as soon as the new airline regulations were released, just to reiterate that the batteries in their luggage can be removed.
“We try to do things as smartly as we possibly can to make sure that we fair better than some of those players that are no longer around in the space,” Ryan said.
"there’s smart luggage and then there’s smarter luggage."
Modobag, which is completely manufactured in Chicago, started on Indiegogo in 2016, where it raised more than $760,000. With an official launch at CES in January, Ryan said the company has been growing. They have expanded their team to 12 employees and have delivered 1,000 suitcases, which retail for $1,495. Ryan said the titanium batteries account for Modobag’s steep price.
With two of Modobag’s competitors now gone, it would seem there is more potential for Modobag to dominate the smart luggage market, but Ryan said he doesn’t necessarily see it that way.
“There’s still a lot of players that are in the sector,” Ryan said. “We are competing both with other players in smart luggage as well as legacy luggage providers. We are focused on developing a product that improves the consumer experience and filling the void that existed.”
