BikeExchange, an Australia-based marketplace, has acquired Kitzuma, the Asheville, N.C.-based bike-shipping service that launched last December. BikeExchange, whose stock is publicly traded on the Australian stock exchange, will pay $3.4 million for Kitzuma.
Kitzuma offers “white glove” bike delivery for retailers and for brands including Wahoo, Litespeed, Ventum, Quintana Roo, LeMond, Alchemy, and Enve, for about $200. Bikes are picked up and delivered fully assembled in Kitzuma’s vehicles.
Kizuma’s annualized shipments are more than 6,200 (based on its October 2021 figures) off a base of 30-plus active accounts. Kitzuma also has a planned launch of a consumer service early in 2022 for shipping ready-to-ride bikes for people traveling by bike. Kitzuma also plans to expand its service into key global areas including Europe and Australia.
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.”
He added, “From the early meetings with the Kitzuma team there was clear chemistry and alignment on the synergies and opportunities for the collective business. 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 U.S., and we aim to replicate the business in Australia and Europe in time.”
The three founders of Kitzuma — Taylor Essick, Chris Cosgrove and Tony Eggers — will remain with the business with key roles in the continued growth of the business and integration with BikeExchange.
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.”
