Peloton keeps growing, and so does the pain

“They have a wonderful thing to offer, but I do not appreciate how they treat a large portion of their members,” she said. Taurus said. She sold her bike after receiving it, Ms. Taurus said, disappointed with the quality and overall experience with the company. She bought another brand.

Since last fall, Peloton has recognized logistical problems with the demand for its bikes, which start at $ 1,895 and are equipped with a screen showing subscription training classes. The nine-year-old company cited a huge demand, sending logjams, especially in ports, as the bikes are shipped to the U.S. from manufacturers overseas, and weather disruptions. The pressure did not allow because demand is still increasing from people who want to exercise at home amidst Covid-19.

“It’s hard to grow a business quickly during a global pandemic,” Peloton CEO John Foley said in November.

The company, which reports financial results on Thursday afternoon, plans to sell at least $ 3.9 billion for the fiscal year ending June 30, more than double the previous fiscal year. The share price has risen 30% over the past three months and has more than quadrupled from a year ago, driven by an ever-growing legion of bike owners and investors using social media to defend and defend the company.

It is not clear what percentage of orders are affected by delays. Yet the month-long wait for Peloton bikes and careers is a common refrain on social media, and the company warns consumers about the delays before making a purchase. A common understanding based on social media messages and complaints at the Better Business Bureau: customers are given a delivery date that is weeks or months away, so the delivery is canceled within hours of the expected arrival. Scheduled dates can take months.

Another complaint is that customers who finance a Peloton sometimes pay for months before receiving their bike.

“They take our money, do not deliver a bike and then continue to sell and deliver new bikes to new customers,” said Laurie Donnelly, who canceled her order after being delayed at the last minute and the new date was months out. She got angry when she told on social media about people receiving bikes in much shorter windows, and through divergent explanations the company gave for the delay.

Peloton said it offers full refunds to anyone who wants it.

“Unfortunately, there are a number of issues related to ports and pandemics beyond our control that could affect our delivery schedule, and we are doing our best to get the delivery dates of the customers concerned as soon as possible,” Peloton’s spokesman said.

She said the company “enables customers in most areas to plan a convenient delivery date and time period,” adding that inventory as well as delivery issues can lead to delays.

BMO analyst Simeon Siegel said Peloton could see an end to its ability to thrive amid such logistical turmoil. “Before Covid, there were no major competitors that were largely funded. Now there are more competitors that have raised significant amounts of capital,” he said.

Producers in many industries experienced production and delivery problems during the pandemic, and Mr. Siegel said consumers are more tolerant of year-long waiting times for sought-after products. “It’s one thing not to have the units, but to have so many deliveries is what causes the frustration,” he said. “This is a classic indication of a business that has grown faster than its infrastructure.”

Peloton agreed in December to Precor Inc. to acquire a commercial supplier of fitness equipment, which will give the company extra American manufacturing capability.

The problems have led to angry prospective customers. About 10,000 people have joined a Facebook group devoted entirely to delays in Peloton, while the Better Business Bureau has registered more than 1,100 complaints about the company in the past year.

In December, Ms. Bull, from Bellingham, Wash., People on the delivery of the Peloton’s Facebook page began investigating and cracking the numbers with a Google data collection tool in an effort to track down both cartridges and to convince Peloton executives that they have a serious problem.

She recently presented her findings to an investor group presented by a stock analyst who follows the company.

“I started it out of frustration,” she said. “Now I do more to answer my own questions.”

Write to Sharon Terlep by [email protected]