A group of independent bicycle dealers have agreed to form YaYa! Bike, America's first bicycle dealers' shared-services cooperative. Said George Gatto of Gatto Cycle Shop in Tarentum, PA, "There have been several other attempts at forming more narrowly focused bicycle dealer buying groups over the past ten years. These efforts ultimately didn't succeed because they were not based on a proven member-owned cooperative business model that encompassed a broader set of services".

YaYa! Is scheduled to officially start operations May 1, 2001. The corporate structure, as well as the management and governance approach, will be a compilation of methods used by similar world-class cooperatives such as ACE Hardware, AMAROK Drywall Distributor Cooperative, Carpet One, and IMARK.

YaYa! has partnered with Cooperative Solutions, America's leading cooperative incubation and service provider, to launch their venture. Bob Friedman has been designated CEO of the new bicycle dealer cooperative. Friedman, a cooperative developer for Cooperative Solutions forged the alliance with CS and has secured a line of credit with the National Cooperative Bank. After attending this year's BREC/BPSA Joint Industry Conference in San Diego, Friedman stated, "there is tremendous potential for a nationwide member-owned shared-services cooperative to supply marketing and management support and pooled buying power for independent specialty bicycle retailers."

Jay Townley, a long-time bicycle industry expert, has been recruited to serve as a consultant and advisor to YaYa! Bike's board of directors and senior management team. Said Townley, "After visiting Cooperative Solutions' headquarters and meeting the management team, I was convinced of the viability of YaYa! Bike's strategic vision to put the cooperative business model to work for bicycle dealers. This is the right solution at the right time for independent dealers and their manufacturer and distributor partners. This cooperative will be a win/win solution for the industry and for bicycle enthusiasts throughout America".

Friedman echoes Townley's thoughts and enthusiasm, "The member-owners of YaYa! Bike will benefit from becoming the channel of choice in a highly fragmented industry. By bringing order to this niche, YaYa! Bike will earn purchase rebates, national brand recognition, and greater supply chain efficiencies. Our member-owners will also benefit from an important strategic alliance between Cooperative Solutions and the National Cooperative Bank. This alliance, called Co-opSolutions.com, will bring savings on non-core business items such as insurance, computer software, computer hardware, finance, credit-card processing, store layout, store fixtures and information technology including B2C and B2B systems. Other intangible benefits include shared best practices, and a unified community that will improve the industry for all market players. Our supplier-partners will benefit from the ability to preplan their inventory, grow a new and enlarged customer base, utilize information technology that includes B2B systems, and forging stronger more profitable relationships with the bicycle dealer member-owners of the cooperative community," concluded Friedman.

For further information, please contact:
Bob Friedman - bfriedman@co-opbuilders.com