With a turbulent 2020 among an economy of struggling businesses due to COVID-19, Peloton saw continued growth and recorded its first billion-dollar quarter. However, the only factor slowing this connected fitness company down has been Peloton delivery delays.
According to a recent interview with Yahoo Finance Live, Peloton president William Lynch addressed the delivery delays:
We have said we believe our order-to-delivery is going to come down. This investment certainly will help. We see light at the end of the tunnel for sure, with these manufacturing ramps. We’ve added two new factories in Taiwan over the last four months alone. And so we feel like we’re in a good place with manufacturing and sourcing.
The investment Lynch is referring to is the $100 million recently announced by Peloton CEO John Foley to expedite deliveries worldwide. Peloton’s CEO apologized to current customers who have seen multiple delays or reschedules in their Peloton deliveries the past year. The fitness giant has already increased its manufacturing capabilities by 6x in the past 12 months.
Lynch expects accelerated growth to continue for Peloton through 2021, providing a “light at the end of the tunnel.” The interview goes on to say that Lynch expects things to get better by the spring.
Furthermore, there is increasing evidence that Peloton is making moves to expand to Australia soon. That new market Down Under will be great for exposure and revenue, but could bring additional logistical issues. That is, if port congestion and delivery delays continue.
With February already more than half over, spring seems not so distant, and hopefully, especially for those buried in snow right now. Time will tell if these Peloton delivery delays are in fact being rectified. For now, customers will still have to wait patiently.
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