Online bicycle business BikeExchange is preparing a newly acquired 'ready to ride' delivery arm to help encourage more people to buy a two-wheeler on the Internet.
The bicycle marketplace on Friday published second-quarter figures which showed sales improved in all regions except North America. The latter had supply chain troubles and changes to commissions.
Yet chief executive Mark Watkin expects the newly acquired Kitzuma business, purchased in December for $4.75 million, will further boost sales.
Kitzuma delivers assembled bicycles, rather than bicycle parts in boxes, from stores to customers.
Mr Watkin said assembling a bike was often a challenge for customers.
The service also excels at transporting e-bikes, which are growing in popularity.
While Kitzuma currently trades only in the US, Mr Watkin said the service could be provided in countries like Australia.
"Australia is clearly an opportunity we'll be looking at," he said.
"We're ambitious and we're starting planning for it."
Mr Watkin was reluctant to give a timeframe for when the service might be offered.
Second-quarter sales in Australia and New Zealand improved by 21 per cent.
A host of bicycle shops as well as distributors trade through BikeExchange. The latter charges a subscription fee for access to its platform.
Not every bike shop has embraced the platform however. The 99 Bikes chain, owned by Flight Centre Travel Group, is focused on its own online channels.
Bicycle sales have boomed in the pandemic. People have shunned group and indoor activities for outdoor ones.
"COVID has helped us," Mr Watkin said.
"Many retailers who were just taking inquiries on our platform have turned to sales."
Like many technology businesses in the growth phase, BikeExchange is yet to make a profit.
Mr Watkin said he would like to see profit in the next 18 months.
The business formed in Melbourne in 2007 as an online classifieds site. BikeExchange joined the ASX last year and sold shares for 26 cents in its initial public offering.
Shares on the ASX were down about seven per cent to 12 cents at 1542 AEDT on Friday.
