BikeExchange buys box free bike shipper and assembler Kitzuma

Australia-based BikeExchange Limited (ASX:BEX) has acquired 100% of the US-based ‘Ready to Ride’ bike delivery and logistics business, Kitzuma, for US$3.375 million.

The acquisition is aligned with BikeExchange’s overall ‘e-Commerce first’ strategy and the pursuing of M&A opportunities which enhance the customer journey for purchasing everything bike.

Kitzuma streamlines the journey for both sellers and customers buying bikes online, and instore, by shipping the bike ‘Ready to Ride’, removing the need to have the bikes shipped in boxes.

BikeExchange’s Global CEO Mark Watkin said: “Kitzuma’s purpose-built logistics platform, which allows bikes to be transported box-free and fully-built, will eliminate a significant barrier for many customers purchasing a bike online – having to unpack and assemble it. Kitzuma will be a compelling white-glove service for retailers and brands using the BikeExchange marketplace and broader.”

“The Kitzuma acquisition is transformative for BikeExchange and will be a significant driver for our e-Commerce first strategy and enhancing both the seller and customer journeys for buying and selling bikes. In a short space of time, Kitzuma is now delivering across the entire US and we aim to replicate the business in Australia and Europe in time.”

The three founders of the Asheville, North Carolina-based business – Taylor Essick, Chris Cosgrove and Tony Eggers – will remain with the business and will play pivotal roles in the continued growth and integration with BikeExchange.

Kitzuma CEO and Founder Taylor Essick said: “We are clearly delighted with the acquisition announcement. Since the initial meetings with Mark and the team at BikeExchange we could see the significant opportunity and potential to create a strong end to end process for buying, selling, and shipping bikes.

“The Kitzuma service is already providing a unique service with the ‘Ready to Ride’ bike deliveries. We want to see this model grow and expand in North America and around the world. The breadth of choice across retailers and brands and the regional footprint of BikeExchange is an excellent foundation to build from with the Kitzuma model. Chris, Tony and myself are excited for the transition and growth to come.”

BikeExchange said in its trading updates last year that gradual expansion throughout Europe and beyond is also on the cards for the years ahead.