BikeExchange owned Kitzuma expands bike delivery reach in USA

Kitzuma, the BikeExchange owned cycling goods logistics business that is delivering built bikes to consumers doorsteps, has announced an expansion of its U.S. footprint with the opening of a 20,000 square foot North Carolina base.

Owned by the ASX-listed second-hand bikes giant, the on the road service seeks to become the middle ground between warehousing bikes, handling orders and shipping them fully ready to ride to retailers or consumers.

Key partners already taking advantage of Kitzuma’s warehousing and white-glove fulfillment services include Cinelli, an Italian manufacturer of world-renowned road and gravel bikes, and Econic One, a European eBike manufacturer expanding rapidly across the U.S. market.

“Kitzuma Cycling Logistics has been essential to the growth of Econic One in the U.S. with their ability to provide warehousing services and providing our B2B and D2C customers with efficient shipping options.” says Econic One’s COO, Matias Alvarez. “Everyone on the Kitzuma team has been extremely helpful and communicative with their operations, and we’re excited to keep working with them in the future.”

A sharp growth in electric bike brands selling direct to consumer and also via the retail network will be Kitzuma’s key clientele. The market data from the USA illustrates that, despite once again being overlooked in key legislation, Americans are buying into eBikes at a faster rate than four wheeled EVs. The USA imported nearly 790,000 electric bikes in 2021, while Americans bought 652,000 EV cars. This, say many commentators, is down in large part to the unaffordability of EV cars to younger generations, who have instead shown a propensity to use sharing apps, or look at cheaper transport like bikes.

Kitzuma’s role for the bike industry is to navigate the details required to plan, coordinate, track and fulfill delivery of such goods, leveraging a knowledge of both bike manufacturing and logistics, global container shipping, trucking and personalized, fully built delivery.

“This ensures the highest level of service for our clients and more-than-meets the expectations of their B2B and consumer customers,” says the brand, who meet head on some trends by big name brands to offer out home delivery services. Specialized, for example, have begun such a service, but freely admit that it will be difficult to get nationwide coverage quickly. In the UK the roll out begins in Surrey, while the brand establishes the processes and gains learnings.

Additionally, Kitzuma is now offering LTL services (less-than-truckload freight) for brands and retailers shipping bikes and other products in smaller amounts that don’t fill entire trailers. Examples include dealer fulfillment, trade shows, etc.

“Warehousing and fulfillment have been on Kitzuma’s roadmap since we started, so we’re starting to round out our growing list of services,” says Taylor Essick, CEO of Kitzuma Cycling Logistics. “We are very excited to have Econic One and Cinelli on board and are looking forward to adding more cycling brands in Q3 and Q4.”

Having recently changed some personnel at the top of the BikeExchange business, cost expenditure has been a key focus of the global bike listing firm as it eyes profitability at the end of FY24. The business has apparently seen continued growth in Europe, while North American operations delivered a 305% revenue increase. Cash outflows are a key focus for the business, which hopes to save over $5.5 million as part of a restructuring.

At the time of the Kitzuma buyout, former BikeExchange CEO said of the deal that it would “unlock a lot of the points that are within the BikeExchange business” and “will eliminate a significant barrier for many customers purchasing a bike online – having to unpack and assemble it.”