Peloton's Business Is as Busted as Its Bike Seats

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Peloton issued a recall of its PL-01 bicycle over a seat post that can literally snap off when you pedal too hard, leading to injury.

is costing the company tens of millions of dollars—upwards of 20,000 members have paused their subscriptions over the recall as they wait for a new bicycle seat. According to Peloton’s Q4 shareholder letter released today, the company revealed that 750,000 customers made requests for a new part since the recall was issued in May.

and that only about half of those requests—340,000, to be specific—have been fulfilled, with the remainder to be fulfilled by the end of September.“The cost of this recall substantially exceeded our initial expectations, leading to an additional accrual of $40 million this quarter for actual costs incurred as well as anticipated future recall-related expenses,” McCarthy said in the letter. “In addition, an estimated 15 to 20 thousand of our 2.

On Wednesday morning, Peloton’s stock price plummeted by as much as 20 percent and was on track to close at a record low for the company.Peloton did not immediately return Gizmodo’s request for comment on the recall. Peloton issued the recall in May, announcing that the post that connects the seat to the body of PL-01 model bikes will snap off when customers peddle too hard. The company said it received 35 reports of bike seats completely snapping off, while the Consumer Protection Safety Commission

13 accounts of customers receiving injuries spanning from lacerations to fractured wrists from falling off the bike. The PL-01 is the company’s original model that put it on the map, having been sold from 2018 to 2023.

 

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