PIT’s xBridge Builds on Pittsburgh’s Reputation as a Welcoming Space for Tech Startups

U.S. airlines handle more than 500 million bags of luggage each year, placing significant demands on baggage handlers. The repetitive task of unloading approximately 200 bags, each weighing about 40 pounds, from every flight has been linked to injury rates of about 10% among airline workers.

That’s where Reeg Allen, CEO of Pittsburgh-based Journey Robotics, identified an opportunity to bring innovation to the task.

“Imagine if airports and airlines could easily modernize their baggage handling systems using advanced technologies without having to upgrade the entire infrastructure,” he said.

The vision took shape as Allen worked at RE2 Robotics, a former Lawrenceville-based company founded in 2001 as a spinout from Carnegie Mellon University’s National Robotics Engineering Center.

“We focused on autonomous systems for complex problems — including airport operations for everything from underwing refueling to water servicing,” Allen said. “We collaborated with major international airports and saw firsthand the inefficiencies in ground operations, especially baggage handling.”

RE2 Robotics was acquired by Sacros Technology and Robotics Corp. in 2022 to grow its commercial robotics team. Two years later, Sarcos pivoted to AI and closed its Pittsburgh office.

Allen, Kyle Solomon, Keith Gunnett and Dave Lee co-founded Journey Robotics with a team of former RE2 employees.

Journey Robotics developed a drop-in automated baggage handling system that features a vacuum-powered baggage lifter. The system utilizes cutting-edge AI computer vision, along with a patent-pending end-of-arm robotic tool, to handle bags of all shapes, sizes, and textures, demonstrating the potential of advanced technologies in revolutionizing airport operations.

The current testbed system can unload bags weighing up to 70 pounds at a rate of up to eight bags per minute.

“This enables continuous, consistent, fast baggage handling, resulting in reduced wait times, fewer delays, and improved passenger experience,” Allen said.

But the concept needed a testing ground to prove itself.

xBridge at Pittsburgh International Airport

Small tech companies often face challenges testing their concepts.

“The airport is a huge, untapped resource in the region that can be utilized to support all these early-stage tech companies,” said Cole Wolfson, director of xBridge at Pittsburgh International Airport.

xBridge, a tech innovation center located at Pittsburgh International Airport, plays a crucial role in the development and deployment of innovations within the aviation industry. It collaborates with startups, universities, and industries, providing a testing ground for new technologies and facilitating partnerships between tech companies and the airport.

“It gives folks who run the airport an opportunity to see, touch, feel and understand the latest and greatest in technology,” Wolfson said. “especially technology not native to the aviation industry.”

From remote-operated cars with Mapless AI to Blueberry, an autonomous wheelchair provider, xBridge serves as a testing ground for companies.

PIT supports regional tech companies in various ways. Gecko Robotics is one of many Western Pennsylvania-based businesses contracted to work on PIT’s new terminal. Its software collects data on large physical structures, enabling airport staff to inspect the building’s fire safety. Gecko was introduced to PIT by xBridge, but Gecko was not an xBridge project.

xBridge partners with companies to identify proof-of-concept projects at the airport that enable them to develop, test, or demonstrate their technology, product, or service. Airport business units have the opportunity to see these companies in action and sometimes seek to partner with them through xBridge to deploy their tech in a pilot capacity for a specific use case.

Journey Robotics began working with xBridge this year and was featured at the World Innovation Summit, which began as the Aviation and Robotics Summit in 2023 when PIT CEO Christina Cassotis pitched the idea of an aviation and robotics event in Pittsburgh. Future Travel Experience is the organizer of the event in partnership with PIT.

“We are able to capture data and refine our system based on performance in a live airport environment,” Allen said. “Most startup companies do not have the chance to test their early prototypes in this way. PIT’s xBridge program gives tech startups a leg up on the competition because of our ability to test and improve our system in an actual airport setting.”

The airport’s new terminal will also reduce the distance bags need to travel and waiting times by half.

Solving a problem with tech

Wendy McSparren is a licensed clinical social worker with 36 years of experience in the Pittsburgh region. During the pandemic, her practice experienced tremendous growth, leading to an overwhelming influx of referrals that she struggled to manage.

“My husband was watching me pull my hair out with all the frustration with referrals to get services,” she said.

McSparren’s husband, John Mihalik, is a software engineer who has been in the startup world for years.

“Behavioral health is very antiquated,” she said. “I was managing things with spreadsheets, and that worked for a while, but the sheer volume was too much. [John] helped me put together some systems with duct tape and strings, and it didn’t solve some of the serious issues I was having with verifying insurance.”

Recognizing the need for a more effective solution, Mihalik proposed developing custom software.

“Tech baffles me sometimes,” she said. “John is so versed in it. When I go in his office, he’s got three giant screens and he’s writing in code and it looks like hieroglyphics, but we iterate nicely.”

“We were only doing it for my practice,” she says. “But I have a network of friends and colleagues who are mental health practitioners and own group practices. They said. ‘I really want that, I need that.’”

The pair invited McSparren’s colleagues for beta testing and was considering bringing the product to market. McSparren participated in Chatham University’s Center for Women Entrepreneurship in a six-week course called Concept to Launch.

AlphaLab accelerator supports tech startups in Pittsburgh

That’s when McSparren heard about AlphaLab.

“The founders are coming to us with a depth of knowledge about the industries that they’re in,” said Aaron Tainter, director of accelerator programming for Innovation Works. “These are often veterans of an industry trying to build something new or creative in that industry.”

Innovation Works is the largest seed-stage investor in Southwestern Pennsylvania supporting tech entrepreneurs. In 2023, the organization launched the Robotics Factory at Tech Forge in Lawrenceville. That year, its portfolio generated $850 million with 73 new products commercialized, and 47 patents and software copyrights awarded.

AlphaLab is IW’s accelerator program, serving as the first stage in the funding continuum.

The six-month program provides each company with up to $100,000 in startup capital and access to the robotics workshop. The program focuses on scaling up entrepreneurs in the areas of customer development and capital acquisition.

“The customers area entails the early customer discovery process, early sales, go to market, customer acquisition — everything equipping founders to get to market and acquire first customers,” Tainter said.

The capital program provides companies with essential resources and skills after receiving initial seed funding.

“One of the main differentiators with AlphaLab is that many other accelerators have become virtual or hybrid,” Tainter said. “Our community and what our alumni have told us is that they appreciate the time they spend with founders physically in the same space. We’re also a one-city accelerator; 30 percent of founders move from out of town to our region.”

Admirra, a solution for mental health practitioner management

“I’m a therapist, I’m a caregiver, I’m used to taking care of other people,” McSparren said. “I felt taken care of. [AlphaLab] anticipated our needs and helped us access resources to meet those needs and challenges.”

Through the AlphaLab program, McSparren and Mihalik launched Admirra, a software solution designed to help therapy practice owners manage their practice more efficiently. The CRM tool offers practitioner management, a therapist-matching tool, workflow management, analytics and more.

“We’re building in AI components to help client care coordinators match better to therapists — that makes the difference for positive outcomes and people sticking with therapy,” McSparren said.

She emphasized that one of the primary challenges Admirra addresses is the bottleneck in accessing treatment. While 51 million Americans suffer from mental health issues, it takes an average of 70 days to receive treatment.

“This frees up providers to provide services,” she said.

Admirra has expanded from five data testers to 17 customers on its platform.

“We never would have been able to access the courses, mentors, and resources without AlphaLab,” McSparren said. “They are incredibly supportive in so many ways. I think they have a reputation for being too nice, sometimes I said, “You have to kick our butt.’”

Pittsburgh offers a space for tech incubation

Pittsburgh is also home to world-class technology accelerator programs at Carnegie Mellon University and the University of Pittsburgh. CMU’s Swartz Center for Entrepreneurship features Project Olympus, an incubator that supports CMU entrepreneurs from concept development to business creation. To date, Project Olympus has facilitated the formation of 324 companies from various startup projects.

Journey Robotics was recently awarded a $100,000 investment and mentorship from CMU’s new Tartan Entrepreneurs fund and was part of the 2024 cohort of the Robotics Factory accelerator program.

Meanwhile, Pitt’s Innovation Institute serves as a hub for innovation and entrepreneurship, providing support for technology commercialization and startup funding. The program has successfully launched over 100 startup companies.

Additionally, Pittsburgh’s cost of living offers a competitive advantage compared to other tech-centric regions, such as Silicon Valley.

Of the 50 largest U.S. metro markets, Pittsburgh ranked first in affordability those earning a median income, according to the latest report from Realtor.com. The typical single-family home in Pittsburgh cost $249,900 in May, which would require just 27.4 percent of the median income to finance, assuming a 20 percent down payment—making the Steel City the nation’s most budget-friendly metro for homebuyers.

“Our initial investment goes a lot further than it would in Boston or New York,” Tainter said. “Pittsburgh is also at the forefront of robotics, AI, and life science trends.”

“Pittsburgh is amazing for startups, and the ecosystem is right for continuing to develop tech here of all sorts,” McSparren agreed.

The Pittsburgh Technology Council (PTC) is the nation’s largest IT association, boasting over 1,000 members. It helps companies find talent, drive business growth, enhance visibility, and foster advocacy. PTC recently launched the DREAMS Coalition in partnership with the Keystone Space Collaborative, designed to propel advanced technology startups in aerospace, robotics, AI, and manufacturing.

“We want to ensure we’re giving them that extra chance to survive because it is not an easy game when you’re building a company,” said Jonathan Kersting, vice president of communications and media for PTC. “The more support we can wrap around these companies to get them to that stage, the better.”

The DREAMS coalition focuses on four key pillars:

• Federal funding assistance
• Industry connections
• Investor engagement
• Collaborative workspace: A co-working space located in Bakery Square can accommodate up to 30 members as part of a Keystone Innovation Zone, which enables these companies to receive tax credits.

“Pittsburgh has become a hub for robotics and AI, with amazing institutions like Carnegie Mellon and the University of Pittsburgh turning out top talent,” said Allen of Journey Robotics. “These pilots will provide technical feedback and insights to ensure that our product meets the needs of our customers. It’s an exciting time to be developing systems with physical AI and advanced robotics here in Pittsburgh.”