Peloton’s rapid rise threatened by slow delivery, poor service
Peloton’s relentlessly positive Instagram posts usually attract enthusiastic responses from its 1.2 million followers, who love the company’s charismatic instructors and its $1,900plus bikes and treadmills.
But recently the company’s account has become a beacon for outrage about delayed deliveries and hours spent with customer service representatives. “I know a good Peloton goal … deliver my mom’s bike that was supposed to be here December 21st!” snapped one person in response to a post about New Year’s goals. “I could be close to 900 rides oh but that’s right I don’t have my bike!” another replied to a post about a user’s 900th ride.
After more than quadrupling in value to more than $40 billion during the coronavirus pandemic, Peloton is now experiencing some serious growing pains. Some customers who ordered bikes as far back as October in expectation of having them for the holidays or in time to begin New Year’s resolutions find themselves still waiting for deliveries.
“What we’re finding is that Peloton the idea has grown faster than Peloton the company,” said Simeon Siegel, a retail analyst at BMO Capital Markets. “All companies need to figure out how to grow into their hype. Right now, the hype surrounding Peloton is like no other.”
The complaints include delivery trucks not showing up when they are scheduled. Some customers have reported getting automated emails pushing their delivery dates out by a month or more, and then receiving little clarity from customer service representatives, who sometimes blame Peloton’s shipping partners.
A Facebook group dedicated to discussing delivery issues has more than 8,400 members and includes Peloton employees. Reddit’s Peloton forum also has a robust daily chat with new buyer woes.
Peloton has a customer rating of 1.4 out of five stars with the Better Business Bureau, where 813 complaints have been closed in the past 12 months. And on Twitter, an account called Peloton Lies has been collecting complaints.
It is not simply a case of bad PR for Peloton. While people stuck at home during the pandemic have splurged on the company’s bikes and treadmills — which can cost upward of $2,500 — and paid a monthly fee of $39 to participate in virtual classes, the eventual reopening of gyms across the country will pose serious competition.
Peloton, which had more than 1.3 million members who owned its bikes or treadmills in September, more than double than a year earlier, has acknowledged its lengthy delivery times.
Jessica Kleiman, senior vice president of communications at Peloton, said the company was transparent about estimated wait times with customers.
“We acknowledge that this is not the Peloton experience we typically deliver to our members, and getting back to where we need to be is a No. 1 priority for our leadership team,” she said.