619: Airline Charged Me $65 - So I built a $250M Competitor | Adam Ewart
Timestamps are as accurate as they can be but may be slightly off. We encourage you to listen to the full context.
Podcast Summary
In this episode, Adam Ewart shares the remarkable journey of transforming a £50 excess baggage fee into SendMyBag, a $250 million global logistics empire operating across 145 countries. (02:28) What started as frustration over airline charges led to building an automated, profitable business that moves over 250,000 bags annually with just 32 staff members. Adam reveals how he leveraged scrappy PR tactics, ruthless automation, and customer-first obsession to bootstrap his way to success without VC funding, maintaining profitability for 15 consecutive years despite navigating Brexit, COVID, and various industry disruptions.
- Core themes include bootstrapped growth through automation, strategic PR for customer acquisition, building resilient operations that survive major industry shocks, and creating sustainable competitive advantages in international logistics
Speakers
Nathan Chan
Nathan is the founder and CEO of Foundr, a leading entrepreneurship media company and education platform. He hosts the Foundr podcast where he interviews successful entrepreneurs and business leaders, helping aspiring founders learn proven strategies for building and scaling businesses.
Adam Ewart
Adam is the founder and CEO of SendMyBag, a global luggage shipping service operating in 145 countries with over $250 million in annual revenue. Starting with just £100 and a basic website in 2010, he built the company into a profitable logistics empire that moves 250,000+ bags annually with only 32 staff. He previously founded a successful musical instrument manufacturing business while at university and has never worked a traditional full-time job for anyone else.
Key Takeaways
Leverage Your Existing Knowledge to Identify Opportunities
Adam's breakthrough came from recognizing that his experience shipping musical instruments globally could solve the luggage problem he encountered. (05:22) When charged £50 for excess baggage, he immediately knew this was overpriced because he regularly shipped saxophones and guitars internationally at much lower costs. This demonstrates how entrepreneurs should look for problems within their existing areas of expertise rather than venturing into completely unknown territories.
Master Free PR Before Paid Advertising
Adam built SendMyBag's early customer base entirely through strategic PR without spending money on ads. (06:58) He leveraged his "young entrepreneur" angle and recent business success to get local TV coverage, which drove hundreds of visitors to his basic website and generated his first customers. This approach worked because he understood what journalists needed - interesting stories - and positioned himself accordingly.
Automate Relentlessly While Maintaining Quality
SendMyBag's competitive advantage comes from massive automation investments since 2014. (21:21) Adam's team first perfects processes manually to ensure quality, then systematically automates them. They've built dozens of custom tools for customs processing, tracking, and customer service that allow 32 staff to handle 250,000+ shipments annually. The key is automating without sacrificing the personal touch that drives customer referrals.
Build Resilience Through Geographic Diversification
When Brexit eliminated 40,000 annual shipments overnight, SendMyBag survived by having established operations across multiple markets. (27:07) During COVID, while some regions were locked down, they could pivot to serve Americans returning home and worked with companies like Cirque du Soleil for repatriation services. This geographic spread provides crucial insurance against regional disruptions.
Prioritize Customer Lifetime Value Over Short-Term Profits
Even when COVID-related surcharges added $180 to every shipment, Adam absorbed costs to maintain customer relationships. (38:45) With 42% of customers being repeat users and 85% coming from referrals, he understood that preserving these relationships was more valuable than maximizing immediate profit margins. This long-term thinking enabled sustained growth through industry crises.
Statistics & Facts
- SendMyBag generates over $250 million in annual revenue while operating in 145 countries with only 32 staff members. (01:10) This demonstrates extraordinary operational efficiency in the logistics industry.
- 85% of SendMyBag's customers come through referrals from existing customers, while 42% are repeat customers who have used the service within the last five years. (38:45) This shows the power of customer satisfaction in driving sustainable growth.
- Brexit alone cost SendMyBag 40,000 shipments per year when customs rules changed between Great Britain and Europe. (27:10) This illustrates how external political events can dramatically impact international logistics businesses.
