Despite record growth, Peloton’s supply chain is hurting its bottom line


This quarter, Peloton hit 1.67 million connected subscribers, up 134% from the same period the previous year. Aside from selling hardware, the company’s business model relies on bike customers paying a monthly fee for access to live and on-demand fitness class. Meanwhile, the total workouts completed during the past quarter surpassed 113 million, up from 26 million sessions last year. 

Chris Jarvis, chief logistics officer at last mile delivery service GoFor, said manufacturing capacity is increasingly becoming an issue for Peloton and others due to customer expectations. “Today, customers expect predictability and visibility centered on delivering on a promise,” Jarvis explained. Peloton’s supply chain woes is an example of being caught flat-footed around delivery and the ability to execute beyond the value of the product.

Still, Jarvis said, supply chains are complex and changing faster than ever, thanks to the e-commerce boom. Right now, many businesses are looking to short-term delivery solutions that help fulfill the high demand, Jarvis said. However, investing in a robust logistics strategy is essential in scaling the brand beyond the pandemic, Jarvis said.

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