Amie Stier started researching Peloton Interactive Inc.’s
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problems with transportation last fall, mainly as a way to close the delivery date of your bicycle long overdue.
Four months later, Stier, a 37-year-old former oil industry project manager, helped organize the unhappy Peloton owners while accumulating a database of delivery delays that attracted Wall Street’s attention.
“They have a lot to offer, but I don’t appreciate how they are treating a good portion of their members,” said Stier. She sold her bicycle after receiving it, said Stier, disappointed by the quality and overall experience with the company. She bought another brand.
Since last fall, Peloton has recognized logistical problems to keep up with demand for its bicycles, which start at $ 1,895 and are equipped with a screen showing subscription gym classes. The nine-year-old company cited increased demand, shipping bottlenecks, mainly at ports, when bicycles are transported from manufacturers abroad to the US, and weather interruptions. The pressures have not eased as demand continues to rise for people who want to exercise at home in the middle of Covid-19.
“It is difficult to scale a company quickly during a global pandemic,” said Peloton Chief Executive John Foley in November.
The company, which reports financial results on Thursday afternoon, projects sales of at least $ 3.9 billion for the fiscal year ending June 30, more than double the previous fiscal year. The stock price has risen 30% in the past three months and more than quadrupled from the previous year, driven by a still growing legion of bicycle owners and investors who turn to social media to defend and defend the company.
It is unclear what percentage of orders is affected by delays. Still, months waiting times for Peloton bikes and treadmills are a common refrain on social media, and the company warns consumers of delays before making a purchase. A common complaint based on social media posts and complaints to the Better Business Bureau: customers get a delivery date that is weeks or months away, only to have their delivery canceled hours after their expected arrival. Rescheduled dates can take months.
Another complaint is that customers who finance a Peloton are making payments, sometimes for months, before receiving their bicycle.
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“They are taking our money, not delivering a bike and continuing to sell and deliver new bikes to new customers,” said Laurie Donnelly, who canceled her order after hers was delayed at the last minute and the new date was missing months. She was furious to see reports on social media of people receiving bicycles in much smaller windows and for different explanations given by the company for the delay.
Peloton said it provides full refunds to anyone who wants to.
“Unfortunately, there are a number of port and pandemic-related problems out of our control that can affect our delivery schedule, and we are doing our best to get new delivery times to affected customers as quickly as possible,” said a spokesman. Peloton’s voice.
She said the company “allows customers in most areas to schedule a convenient date and time window for delivery,” adding that inventory, as well as delivery problems, can lead to delays.
BMO analyst Simeon Siegel said Peloton could end its ability to thrive amid such logistical turmoil. “Before Covid, there were no large, largely funded competitors; now there are more rivals that have raised significant amounts of capital, ”he said.
Manufacturers in many sectors suffered production and delivery problems during the pandemic, and Siegel said that a year later, consumers are much more tolerant of long waiting times for coveted products. “It is one thing not to have the units, but having such mismatch in deliveries is what is causing so much frustration,” he said. “It is a classic indication of a company that has grown faster than its infrastructure.”
Peloton in December agreed to acquire commercial fitness equipment supplier Precor Inc., which will give the company additional manufacturing capacity in the U.S.
The problems gave rise to angry potential customers. About 10,000 people joined a Facebook group entirely dedicated to Peloton’s delays, while the Better Business Bureau recorded more than 1,100 complaints about the company last year.
In December, Ms. Stier, from Bellingham, Wash., Began searching for people on the Peloton delivery page on Facebook and analyzing the numbers using a Google data collection tool in an effort to track patterns and convince executives Peloton that they had a serious problem.
She recently presented her findings to a group of investors hosted by a stock analyst who tracks the company.
“I started out of frustration,” she said. “Now I am doing more to answer my own questions.”
Do you already have a bicycle? Nicole Nguyen from WSJ shows you the equipment and software you need to turn it into a stationary cycle connected to the Internet in a few simple steps. Photo illustration by Dom Amatore for The Wall Street Journal; Photo: Zwift
Write to Sharon Terlep at [email protected]
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