Hard bag. On my 2015 Wrangler Unlimited I was able to remove the tailgate cable routing cover and then snap the clips that hold the bag holder. The whole process took about 7 minutes and was very easy. The bags seem to hang really well, I have two stuffed jumper cables, a tow strap, a mini air compressor, a few tools, a flashlight etc. It's not shown on the Revain website but there is a mesh pocket attached to the actual bag holder, hanging behind the pockets. It can be very convenient for a small umbrella, flat items, etc. Overall a very good product that I would recommend as a great addition to a Wrangler.
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