Just as Peloton starts to get back on its feet, on May 11, 2023, the company announced a voluntary recall of approximately 2.2 million Peloton Bikes (Model PL01) sold in the US. According to the Consumer Protection Safety Commission, the bike’s seat post assembly can break unexpectedly during use, increasing the risk of user falls or injuries. The CPSC advises consumers to immediately stop using the recalled bikes and contact Peloton for free repairs. Peloton has contacted all affected owners of Peloton original bikes in the US via email.
Peloton is offering consumers a free seat post that can be self-installed. The recall impacts products sold in the US as well as in Canada. Peloton, in cooperation with Health Canada, issued a recall in Canada for users taller than 5’11” and over 250 pounds. In Canada, there was only one report of a seat post breaking and no injury reports. About 108,000 of the bikes have been sold in Canada.
Why the recall?
Peloton has gotten 35 complaints of seat posts breaking and detaching from the bike during exercise. The broken seat posts caused 13 injuries including a fractured wrist, lacerations and bruises due to falls from the bike. The company asks customers who have had unreported incidents with the product to contact Member Support.
The Peloton bikes cost $1,400 and were sold by Peloton, Dick’s Sporting Goods, OnePeloton.com, DicksSportingGoods.com and Amazon.com between January 2018 and May 2023. Consumers can find the model number of their Peloton bike on the inside front fork, near the flywheel.
“This voluntary recall is being conducted in cooperation with the U.S. Consumer Product Safety Commission (CPSC). Peloton is offering a free, replacement seat post to all US Peloton original Bike owners, which can be installed at home, without the need for a service call,” said Peloton on its Support page. “We are conducting this voluntary recall as a member-first company, and as part of our commitment to product safety.”
Peloton bike owners who pay for a membership tied to Peloton equipment (e.g., Peloton Guide, Peloton All-Access membership) must continue to pay for their membership, even though they can’t use their bikes until they are repaired, reports Inc. Members can, however, pause their members for up to three months.
Source: Peloton
Not Peloton’s first recall
In May 2021, Peloton recalled its Tread and Tread+ treadmills. The recall was done at the urging of the CPSC who issued an urgent warning to consumers about the products’ dangers in mid-April. At that time, CPSC said it was aware of 39 incidents involving injuries to children and pets, including one child death. Peloton confirmed 70 reported incidents and one child death. In the earnings call following the recall, Peloton said the recall would lower sales by $165 million.
In October 2020, Peloton announced a recall of out-of-warranty PR70P clip-in pedals due to the risk of unexpected axle breaks. This group of pedals were first generation clip-in pedals and were sold between July 2013 and 2016. At the time of the recall, Peloton had received 120 reports of pedal breakages and 16 reports of injuries, including five that required medical care.
Copyright © 2023 Authority Media Network, LLC. All rights reserved. Reproduction without permission is prohibited.
Rear guard repair for Tread+ approved
In May, CPSC and Peloton announced the approval of a rear guard repair for the recalled Tread+ treadmill. The new guard will eliminate the possibility for entrapment near the rear roller of the treadmill. Instead, the design pivots away from the treadmill when it comes into contact with person, pet or other object, shutting off the power and slowing down the belt. The guard is currently being manufactured. Consumers can sign up in advance for the guard which is expected to be available in the fall.
Insider Take
With a new leadership team in place, lower equipment prices and increased membership pricing, Peloton has been trying to overcome past recalls and the post-COVID dip in sales. In the second quarter of fiscal year 2023 which ended December, 31, 2022, Peloton seemed to be turning things around. While total revenue was down 30% year-over-year, subscription revenue was up 22% year-over-year, and new CEO and president Barry McCarthy was pleased with their progress.
“We won’t have the wind at our back every quarter, but we continue to do what’s necessary to ensure this trend continues. As a result, we once again control our own destiny. Our goal remains the same, reach free cash-flow breakeven by year-end FY23,” McCarthy said in a February 1, 2023 letter to shareholders.
This latest round of recalls is going to cost Peloton a pretty penny, not only for the replacement parts but the logistics of getting those products to nearly 2.2 million members. We give Peloton credit, however, for voluntarily recalling the bike parts rather than waiting for additional injuries. They will need their members’ loyalty to dig out of another recall.
Copyright © 2023 Authority Media Network, LLC. All rights reserved. Reproduction without permission is prohibited.
