Origins
Founded by Jen Rubio and Steph Korey (February 2015) to reimagine luggage for millennials. $225-$395 suitcases with built-in USB chargers, lifetime warranty, direct-to-consumer model (no retail markup). Warby Parker for luggage.
Launch Strategy: Instagram-first marketing (glossy travel photography), influencer partnerships (Karlie Kloss, Rashida Jones), delayed launch 6 months for waitlist hype. Raised $31M seed/Series A.
Growth & Hype
Revenue: $12M (2016) → $150M (2018). Raised $181M total at $1.4B valuation (May 2019) — luggage unicorn. Opened retail stores (NYC, LA, SF, London).
Lifestyle Brand: Positioned as travel lifestyle company, not luggage. Launched Here magazine (travel publication), Away Spa pop-up, branded experiences.
Millennial Appeal: Minimalist design, “flat-lay” Instagram aesthetic, #travelgram culture. Pivoted from “affordable luxury” to status symbol ($225 = entry-level).
Toxic Workplace Exposé (December 2019)
The Verge Investigation: Detailed Slack messages from CEO Steph Korey berating customer service team. Called them “brain dead,” threatened firings, demanded 24/7 availability, tracked bathroom breaks.
Toxic Culture: Customer service reps worked 12-hour shifts, no breaks, public humiliation in Slack. Forbidden from “negative” words (problem, issue, sorry). Pressured to lie to customers about delays.
Public Outrage: #Girlboss hypocrisy — female founder preached empowerment, treated workers brutally. Glossy Instagram vs hellish workplace reality.
Korey Resignation (December 2019): Stepped down as CEO 5 days after exposé. Stuart Haselden (Lululemon COO) replaced. Korey returned as co-CEO (January 2020), then resigned again (February 2020).
Business Challenges
Pandemic Collapse: Travel industry died March 2020. Revenue cratered 90%, laid off 50%+ staff (900 → 400 employees). Closed retail stores, halted expansion.
Recall (2023): 110,000 suitcases recalled (lithium battery fire risk) — FAA banned on planes. USB battery removed from newer models.
Competition: Monos, Beis, July, Samsonite copied DTC model. Price wars ($99 Amazon suitcases). Differentiation eroded.
Profitability: Never profitable despite $1.4B valuation. Burned cash on retail stores, magazine, brand experiences. Pivot to wholesale (Nordstrom, REI) contradicted DTC positioning.
Cultural Impact
Girlboss Reckoning: Became symbol of performative feminism, toxic positivity, millennial founder hypocrisy. Theranos, The Wing, Outdoor Voices — pattern of female founders abusing workers while preaching empowerment.
Instagram Illusion: Shiny brand aesthetic hid workplace abuse. Taught consumers/investors to look beyond marketing.
DTC Saturation: Away proved DTC alone insufficient — commodity products need moats. Luggage = price-sensitive, infrequent purchase.
Founder Accountability: Showed investors/media coddled charismatic founders, ignored red flags. Korey’s interim return (January 2020) revealed board weakness.
Post-Scandal Trajectory
Rebrand (2020-2023): Removed Korey from public-facing materials, focused on product vs personality. Launched flexible luggage, backpacks, pet carriers.
Recovery: Travel rebound 2022-2023 boosted sales. Diversified revenue (wholesale partnerships), slashed costs.
Valuation Crash: Down from $1.4B peak to ~$500M (2023 estimates) — 64% decline. No new funding rounds post-scandal.
Lessons: DTC requires moats (brand loyalty, proprietary tech, network effects). Luggage is commodity — can’t command 5x premium long-term.
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