Platoon continues to grow, and so does his pain

“They have something wonderful to offer, but I don’t appreciate how they treat a lot of their members,” said Ms. Stier. She sold her bike after receiving it, said Ms. Stier, disappointed with the quality and overall experience with the company. She bought another brand.

As of last fall, Peloton has acknowledged logistical issues in tracking demand for its bikes, which start at $ 1,895 and feature a screen showing subscription lessons. The nine-year-old company cites rising demand, ship disruptions, especially in ports while overseas manufacturers’ bicycles are being shipped to the US, and weather influences. The pressure has not abated as demand continues to rise from people looking to exercise at home amid Covid-19.

“Scaling a business quickly during a global pandemic is difficult,” said John Foley, Peloton’s CEO in November.

The company, which reports financial results Thursday afternoon, expects revenue of at least $ 3.9 billion for the fiscal year ended June 30, more than double the previous fiscal year. The stock price is up 30% in the past three months and has more than quadrupled from a year ago, made possible by a still-growing legion of bike owners and investors defending and defending the company through social media.

It is not clear what percentage of orders is affected by delays. Still, months-long waits for Peloton bikes and treadmills are a common chorus on social media, and the company is warning consumers about the delays before making a purchase. A common complaint based on social media posts and complaints to the Better Business Bureau: Customers are given a delivery date weeks or months away, but their delivery is canceled within hours of the expected arrival. Changed dates can take months.

Another complaint is that customers who finance a Peloton make payments, sometimes for months, before they receive their bike.

“They take our money, don’t deliver a bike and then go on to sell and deliver new bikes to new customers,” said Laurie Donnelly, who canceled her order after hers had been postponed at the last minute and the new date had passed months used to be. She got angry when she saw on social media accounts of people getting bikes in much shorter windows, and at various explanations from the company for the delay.

Platoon said it offers full refunds to anyone who wants one.

“Unfortunately, there are a number of port and pandemic-related issues that can affect our delivery schedule, and we are doing our best to provide affected customers with new delivery dates as soon as possible,” said a Peloton spokeswoman.

She said the company “allows customers in most areas to schedule a convenient delivery date and time window,” and that adding inventory and delivery issues could lead to delays.

MET 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 rivals that have raised significant amounts of capital,” he said.

Manufacturers in many industries faced production and supply problems during the pandemic, and Mr Siegel said a year later that consumers are much more tolerant of long wait times for coveted products. “It’s one thing not to have the units, but the fact that the supplies are so poorly matched causes so much frustration,” he said. “It’s a classic indication of a company growing faster than its infrastructure.”

Peloton agreed in December to acquire commercial fitness equipment supplier Precor Inc. to take over, giving the company additional manufacturing capacity in the US.

The problems have led to angry potential customers. About 10,000 people have joined a Facebook group dedicated 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. Stier, of Bellingham, Washington, began researching people on the Peloton delivery Facebook page and analyzing the numbers using a Google data collection tool in an effort to detect both patterns and to convince Platoon executives that they have a serious problem.

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

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

Write to Sharon Terlep at [email protected]