ASHEVILLE, N.C. (BRAIN) — Kitzuma Cycling Logistics suspended its delivery service for the fall and winter and laid off most of its driver network in reaction to slowing demand for its door-to-door bike shipping business.
CEO Taylor Essick said most delivery drivers will be able to come back in the spring if they want, when the shipping business is expected to resume. He also added that Kitzuma at this time is not announcing the number of employees affected.
"We grew 35% per quarter for six straight quarters but, like many brands and retailers in the bike industry, we've seen a dip in demand," Essick said. "With the cold weather months ahead, we made the strategic decision to suspend our door delivery service. While this service suspension was not part of our original plan, we will use the time to push several ongoing projects across the line and focus on our growing warehousing and fulfillment business. Clearly, the most difficult part of this decision is the impact on our drivers. As we wind deliveries back up in the spring, we hope to bring back most of our drivers."
Kitzuma announced in August the expansion into warehousing and expanded fulfillment services, and Essick said those areas are growing, appealing to bikes, and parts and accessories brands coming into the U.S. market. The warehouse and fulfillment centers are located in Asheville and Salt Lake City.
Kitzuma partners with direct-to-consumer manufacturers and retailers to deliver fully assembled bikes. It also plans to offer consumer shipping services next year. Last year, BikeExchange announced it acquired Kitzuma for $3.4 million.
