Just under two years ago, Peloton was the toast of Wall Street. With consumers trapped at home and unable to visit gyms, demand for its high-tech fitness equipment soared.
But this is when its troubles began.
The company wasn’t ready to meet such high demand. Customers started to complain about months-long delivery times, last-minute cancellations, and poor customer service. These complaints went on for months, rolling into 2021.
In the meantime, Peloton purchased fitness manufacturer Precor for $420 million to ramp up production levels and cope with demand. But in the background, the market was becoming crowded with other at-home fitness options and competition was heating up.