ASHEVILLE, N.C. (BRAIN) — A judge has rejected Kitzuma Cycling Logistics' motion to dismiss a lawsuit filed by TriBike Transport LLC, which alleges misuse of proprietary and confidential information.
Superior Court Judge Adam M. Conrad made the ruling Wednesday, denying each of six dismissal arguments. Two of Kitzuma's three co-founders, Taylor Essick and Chris Cosgrove, are former TriBike Transport executives who left the company in 2020 before launching the new competing venture. Kitzuma's business model is built around delivering fully assembled bikes door-to-door.
Kitzuma declined to comment on the ruling.
TriBike Transport, a bike-delivery service for triathletes and others who compete in cycling events around the world, filed the lawsuit in May. It also launched a sister company in the spring that delivers fully assembled bikes, called THRU.
In October, Kitzuma suspended 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. Most delivery drivers will be able to come back in the spring if they want, when the shipping business is expected to resume, according to Kitzuma.
Kitzuma announced in August the expansion into warehousing and expanded fulfillment services 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.