“Peloton Bikes, Treads, and accessories have been held at Port for upwards of five times longer than usual,” he wrote.Īccording to the Wall Street Journal, Peloton’s sales more than doubled in its most recent earnings period, while subscriptions to its online workout classes grew by 134 percent. Manufacturing in the US would also solve another problem Foley has mentioned in his post, namely port congestion in Los Angeles and Long Beach, which has been causing a delay for all goods coming into the US. That will give it access to Precor’s manufacturing space in North Carolina and Washington, which will eventually be used to make Peloton’s products. If you’ll recall, the company acquired fitness equipment maker Precor late last year for $420 million. The CEO also said that Peloton has six times more manufacturing capacity than it did last year, but it’s looking to expand its US-based manufacturing efforts even further in the coming quarters. To start with, Peloton is spending $100 million to move its Bike and Tread machines from overseas manufacturing facilities by air and expedited ocean freight in the first half of the year.įoley says that’s ten times the usual transportation and delivery cost per Bike and Tread, but the company is making the investment “to do right by all” of its customers. Now, in a post on the company’s website, Peloton co-founder and CEO John Foley detailed how the exercise equipment maker plans to address the issue. Unfortunately, the company is struggling to meet the sudden influx of demand, and massive delivery delays mean customers are stuck waiting for their bikes and treadmills longer than usual. Peloton enjoyed a surge in popularity over the past year as the pandemic forced people to give up gyms and to exercise in their homes.
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