Platoon to spend $ 100 million to address delivery delays

If you remember, the company acquired maker of Precor fitness equipment at the end of last year for $ 420 million. This will give it access to Precor manufacturing space in North Carolina and Washington, which will eventually be used to manufacture Peloton products. Manufacturing in the United States would also solve another problem that Foley mentioned in his article, namely the congestion at the Los Angeles and Long Beach ports, which caused a delay for all goods entering the United States. “Peloton bikes, treads and accessories were held up in port for more than five times longer than usual,” he wrote.

According to the Wall Street newspaperPeloton’s sales have more than doubled in its most recent revenue period, while subscriptions to its online training courses have increased 134%. As a result, it made a profit for the third consecutive quarter, reporting net profit of $ 63.6 million. However, many customers who have purchased Peloton products since last year have experienced longer delivery times, and some have even seen their shipping postponed on the day their equipment was supposed to arrive. Some customers got new delivery dates months away. WSJ also found cases where people have been funding Peloton equipment for months but have yet to receive their order. It remains to be seen whether the large investment in air freight and other measures taken by Peloton are sufficient to resolve its implementation problems.

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