Want more from Front Office Sports
in your search results?
Peloton is recalling its treadmills — Tread and Tread+ — as a result of mounting pressure following dozens of injuries and the death of a 6-year-old.
News of the recall sent Peloton’s stock tumbling below $83 on Wednesday, an eight-month low. The stock had already dropped 22% from early April to market close on Tuesday.
The connected fitness company is offering refunds for over 130,000 Tread+ machines ($4,295), and another 1,050 Treads ($2,495).
Peloton is rolling out software updates to prevent machines from being turned on involuntarily and offering to move treadmills to a room inaccessible to children and pets in lieu of a recall.
With a recent $100 million investment to scale up logistics and a growing number of challengers on the market, Peloton can ill afford a hit to its brand.
- A slew of competitors have received funding this year: Tonal ($250 million), Tempo ($220 million), Ergatta ($30 million), Hydrow ($25 million), Motosumo ($6 million), and LIT Method (undisclosed).
- The company is also dealing with revelations that all of its customer data is available to any member through a leak in its software API.
Peloton CEO John Foley apologized for initially brushing off warnings from the Consumer Product Safety Commission.
Download the FOS App
The business of sports, in your pocket.
Scan the QR code to get the app now.
