It's hard to argue that the pandemic wasn't a good thing for Peloton, the tech company that makes "smart" fitness equipment such as exercise bikes and treadmills. The New York based Peloton saw its sales jump dramatically at the start of the pandemic, and last quarter almost 100 million workouts were logged on a Peloton machine by its "Connected Fitness" subscribers — up roughly 4x on the previous year.
Safety concerns
Peloton has been extremely deliberate in crafting its brand and message. The company clearly markets itself towards wealthy individuals who want the absolute best in home fitness equipment. Unfortunately that brand has taken a significant dent in the last few weeks as concerns about the safety of their treadmill product (which costs $4,000+) have cropped up, with 23 incidents reportedly involving children, including the tragic death of one child.
With the US Consumer Product Safety Commission now warning users with children about the Peloton product, the company is increasingly under pressure to recall its Tread+ treadmill, which — so far — the company has declined to do. Peloton shares have fallen 13% in the last 5 days.
