In 2007, 99 Bikes opened its first bicycle shop in Brisbane, Australia. Today, it operates 49 retail stores around Australia and an e-commerce website with over 5,000 products. In the early years, online sales represented only a fraction of the total sales, but an unexpected COVID-19 pandemic triggered an unprecedented demand for the company’s bikes. Today, sales are up by over 300%, and the company is expanding rapidly.
A Brisbane-based cycling retailer, Pedal Group for 99 bikes, predicts a supply chain crisis phase two: lumpy inventory. The company now orders stock 18 months to two years ahead of time, rather than the three to six months it had previously ordered. It stocks items ranging from $4230 electric bikes to $74 helmets. With such a long lead time, some items may not sell as well as expected, and the demand will outstrip the supply.
The Pedal Group for 99 bikes is headquartered in Australia and has over 60 retail locations. The company is currently expanding into New Zealand, with plans to have 49 stores by 30 June 2020. In addition to its retail operations, Pedal Group has a wholly-owned distribution company, Advance Traders (Australia) Pty Ltd., which has the exclusive distribution rights for thirty bike brands in Australia. As a result, the company plans to grow to reach a total of 185 stores across five countries.
The Pedal Group is Australia’s largest bicycle company, with more than $200 million in annual sales. The company is a 50/50 joint venture between Gainsdale and Flight Centre, and provides support to independent bicycle retailers through the sale of bikes. The Pedal Group also funds store fitouts, develops websites, and designs marketing promotions. The Australian Financial Review recently interviewed Turner and two of the company’s co-founders and found them to be a great fit for the company.
The COVID-19 crisis is prompting a boom in cycling, says Nicholas Johns, a long-time supporter of Bicycling Australia and owner of the Sydney store 99 Bikes. The crisis has brought an unprecedented increase in sales for the company, as cycling is becoming an accessible, affordable and convenient mode of transport. He says the crisis is causing a surge in interest in cycling, as people want to regain their independence and avoid relying on public transport.
Founded in 2007, 99 Bikes now operates 49 bicycle stores across Australia and has an e-commerce site with more than 5,000 products. The company’s online sales represented just a fraction of total sales until the COVID-19 pandemic triggered a spike in demand for bicycles. The company’s online store has seen its sales increase by up to 50 percent. With COVID-19, sales have surpassed those from the company’s offline stores.
Although the impact of COVID-19 is still not completely understood, the timeline of events has illustrated the need for further research. Future analyses should focus on the competitive relationship between bike sharing and other public transportation modes. For instance, previous research has shown that bike sharing is competitive with public transport. Further research should focus on this relationship as more cities implement similar systems. In the meantime, this study can’t ignore the impact of COVID-19 on the city’s transport system.
Pedal Group’s investment in 99 Bikes
The Pedal Group is an Australian bicycle retailer with a global reach. It consists of the two largest bike retailers in the country, 99 Bikes and Advance Traders. Pedal Group is owned by Flight Centre Limited, which is a public company and therefore has to disclose its financials to the public. The company’s founders were interviewed by the Australian Financial Review to discuss Pedal Group’s investment in 99 Bikes.
In the first phase of the supply chain crisis, the group began ordering stock 18 months to two years in advance, a significant change from the normal three to six month lead time. This has resulted in large inventories of stock, ranging from $4230 electric bicycles to $74 helmets. The long lead times mean that some items may not sell as well as they were hoped. And this can lead to a situation where demand exceeds supply.
The investment in Pedal Pub is an excellent example of how entrepreneurial entrepreneurs can make money. It has a model that works by renting out vehicles to groups for two hours. They provide two staff members – a driver and a bartender – to ensure the safety of the group. Additionally, Pedal Pub also hosts events for single riders. As of now, the company has approximately 230 bikes in its fleet, with plans to expand to a million bikes by 2023.
Pedal Group’s relationship with Xandr
Xandr Inc. is a first-tier affiliate of AT&T Inc., and a leading global programmatic advertising marketplace. The Xandr platform enables media companies to unlock the value of their working media dollars through audience-based buying across screens. This relationship will enable Pedal Group to improve the customer experience and drive business results through its technology solutions. Xandr Monetize is a programmatic advertising platform that helps media companies unlock the full potential of their media spend by optimizing the consumer experience across screens.
The two companies’ collaboration has evolved into several pillars of cross-enterprise identity. First-party audience data is a key priority. The partnership between Xandr and LiveIntent includes partnerships with InfoSum, which protects client data privacy and provides turnkey onboarding solutions. Clients can directly onboard data through Xandr, while optimizing privacy by working with a third-party provider.
Xandr’s leadership team has received recognition in a variety of industry publications. The company was named “innovator” and “tech team of the year” by Cablefax. Its seven top executives were recognized by Cynopsis as Top Women in Media. Xandr’s innovative products, client partnerships, and corporate social responsibility were highlighted by AdExchanger, Digiday, and ExchangeWire. Xandr was named one of the “Top 10 AdTech Companies” by Business Insider.
Pedal Group’s relationship with Magento
In a partnership with eBay, Pedal Group has implemented its technology for specialty retailers. Magento enables these retailers to increase sales by leveraging built-in product recommendations, automatic email follow-ups with abandoned cart customers, and purchase likelihood tools. The latter allows for the optimization of marketing efforts and budgets. This partnership has several advantages, but Lavelle has one question that still remains unanswered: “Can EBAY’s technology help specialty retailers? I’m not sure yet,” says Lavelle, senior vice president of eBay Enterprise.