Peloton invests $100 million to fly bikes overseas as buyers question “where’s my bicycle?”

Peloton is investing $100 million to assist obvious a backlog of undelivered stationary bicycles— and consider to appease hundreds of discouraged clients who say they’ve been ready months for their expensive workout stations.  

Stay-at-property orders, gymnasium closures and other measures aimed at slowing the unfold of the novel coronavirus have fueled need for at-home work out alternatives, supplying Peloton a big revenue increase. 

The firm on Thursday stated its profits far more than doubled in the second quarter, to practically $1.1 billion, when subscriptions to its electronic fitness offerings grew 134%. 

But the 9-12 months-aged startup has unsuccessful to continue to keep up with the unparalleled need for its solutions, projecting months-long delivery estimates and lacking transport deadlines from its factories in Taiwan. Bikes are reportedly piling up at West Coastline ports in Los Angeles and Extensive Seashore, California. 

Discouraged shoppers have taken to Fb to vent to other people also trapped at residence waiting for the work out equipment, which get started at $1,895 and come with a digital contact display that displays interactive, on-demand from customers workout routines. 

Some 10,000 members are section of a “Peloton Supply Dialogue Team” whose description reads: “If you have ordered a Peloton and are anxiously waiting delivery, this is the team for you!”

Many others have shared their irritation right with the enterprise. A Facebook person named Stacy Kihara, primarily based in Hawaii, mentioned she nevertheless has not obtained the Peloton bike she ordered in August. “Amusing, 6-8 thirty day period supply was never mentioned when we dropped $3k on a bicycle we are unable to ride!” she wrote on Peloton’s Facebook web page.

No stranger to complaints and controversy

Peloton has observed by itself in sizzling water in the earlier, over audio licensing agreements and a controversial vacation advertisement

Peloton co-founder and CEO John Foley on Thursday resolved customers’ aggravating delivery activities, and pledged to make investments more than $100 million in “to support expedite the motion of bikes and treads globally, in order to satisfy our shipping and delivery commitments.”

Foley claimed that though Peloton has now elevated producing by additional than six periods in the very last 12 months, shipping stays a sticking position. 

“We obviously have to have to get the bikes and treads from our overseas creation facilities into your houses, and that has also proved hard in this surroundings,” Foley said in a statement to clients. 

Foley said the organization will begin delivery bicycles by air as an alternative of by sea to stay away from congestion at U.S. ports. The company also strategies to ramp up its U.S. production functions in North Carolina and Washington state, which are nearer to a lot of of its clients.

In the meantime, the CEO urged nervous buyers to start off their “Peloton journey” with the Peloton App from which customers can stream yoga, energy and cardio lessons via their phones and televisions —  no bicycle demanded. 

Peloton shares fell more than 7% on the firm’s transport news Thursday. Shares have been down far more than 10% midday Friday, at all around $147.

The stock selling price is up a lot more than 470% considering the fact that mid-March, when the coronavirus pandemic erupted throughout the U.S.