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Bike Friday launches new cargo bike and hopes to build a bigger dealer base

Published November 24, 2014

EUGENE, Ore. (BRAIN) — Bike Friday, a U.S. manufacturer of folding bikes, is launching an adjustable 20-inch-wheel cargo bike and is developing a program to entice dealers to carry them.

Hanna Scholz, the company's president and daughter of its co-founder Alan Scholz, said there's a growing market for these heavy-duty haulers among younger buyers, particularly families living in cities with a bustling urban core.

"We realized the cargo bike movement is building," she said, noting that the company launched the bike late last week — dubbed the Haul-a-Day — through a Kickstarter campaign.

Buyers quickly surpassed the $45,000 minimum Kickstarter required. To date the company has raised about $70,000. Scholz said it appears enough has been raised to build the initial tooling and infrastructure to ramp up production to 25 units a day. The company is on track to raise $100,000 and hopes to build and deliver 1,000 units next year.

Bike Friday, in joining the cargo bike market, will compete with companies like QBP's Surly line, Yuba, Xtracycle, Worksman and a number of European and Asian imports sold online. The company decided — in part — to seek online funding through Kickstarter so it could maintain control of its future production and sales.

The Haul-a-Day's main frame tube has four different adjustments to fit riders ranging from 4-foot-6 to 6-foot-4. The bike will weigh around 32 pounds, making it a relative lightweight in the category.

The standard model can accommodate riders weighing up to 220 pounds plus cargo loads of 200 pounds. A frame upgrade for heavier loads is available.

Its 20-inch wheels front and rear lower the center of gravity to improve stability and offer a lower step-over height. Customers can choose from 14 colors and gearing that ranges from 8 to 72 speeds.

"We must offer something unusual and respond quickly. Going to banks and other types of funding has different implications for how we would have to make decisions that may not be focused on the end-user," Scholz said of the family-owned business.

Alan Scholz and his brother, Hanz, founded Bike Friday in 1992. Earlier, Alan had helped co-found Burley Design Cooperative, initially to make bike bags. But his desire to transport his two young daughters without using a car led to the Burley trailer.

As for selling custom-order folders and travel bikes in the U.S. market — that has been tough despite the company's founding 22 years ago. The company currently has about 20 dedicated retailers with most U.S. sales done online.

Nonetheless, Bike Friday has kept its 33 employees in Oregon's second-largest city busy thanks to international sales throughout Europe, Japan, Singapore, Thailand and other countries where folders are far more popular.

Scholz, 37, said most consumers buying folders tend to be older — ages 50 and up. But she views cargo bikes as an opportunity to appeal to a younger demographic. "This Kickstarter campaign helps us directly connect to that end-user, and that's essential," she said.

As the company rolls out the Haul-a-Day, Scholz is also developing a sales program to make it easier for dealers to work with the Oregon company and expand its dealer network.

Buying a folder, Scholz acknowledges, requires a commitment from dealers to learn the options available in helping customers order the bike. In the U.S., it's the type of bike that appeals more to "geeks" interested in options, gearing and components. "It's a lot of work for dealers and it's been tough," she said.

The cargo bike, however, appeals to a much larger market. "It's a market that's not focused on the bike geek — it's more of a lifestyle choice, and it's the kind of bike that needs to be sold by dealers," she said.

"Dealers have a much easier time in selling them, and it should be easier to sell than a Bike Friday. This is also the kind of bike that end-users need to touch and feel. It's really a lifestyle choice," Scholz added.

On Kickstarter, a Haul-a-Day frame and wheels cost $899; two other models are available at $1,299 and $1,799, depending upon spec.

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