Peloton Promotes New Equipment Amid Recall of Old Bikes

A month into the launch of its latest product line, Peloton is dealing with a recall of some of its older bikes.

The fitness company said in a Thursday (Nov. 6) announcement that it recalled certain Peloton Original Series Bike+ (model number PL02) models manufactured from December 2019 through July 2022 for sale in the United States and Canada.

The company said that it did so after receiving three reports of a seat post breaking on these models. The voluntary recall applies to 833,000 bikes sold in the U.S. and 44,800 sold in Canada. Peloton is offering a free replacement seat post that can be installed by owners of the bikes.

Peloton noted the recall at the beginning of a Thursday earnings call covering the quarter ended Sept. 30.

“This recall does not impact any other equipment models, including our new Cross Training Series Bike and Bike+,” Peloton CEO Peter Stern said during the call.

The company expects the recall to cost $16.5 million, Peloton Chief Financial Officer Liz Coddington said later during the call.

Peloton debuted its new product lineup on Oct. 1, the day after the end of the quarter, saying it includes the Cross Train Series bike, treadmill and rowing machine as well as an artificial intelligence-assisted feature called Peloton IQ that serves as a personal trainer.

Stern said during the call that this equipment aligns with the company’s new strategy that is based on helping members achieve their wellness goals.

For example, all Peloton products now include a swivel screen that makes it easier for users to transition from one exercise to another. In addition, the “Plus” line includes an advanced computer vision movement tracking camera that offers suggestions in real time, while Peloton IQ “gives every Peloton member a personalized coach,” Stern said.

“Since launching the Cross Training Series and Peloton IQ, we’ve observed a favorable mix shift toward our more premium products, including a mix shift toward Tread [treadmill] sales and toward our Plus line of products, the latter of which we believe is driven by excitement around the advanced computer vision features,” Stern said.

Other recent additions to Peloton’s offerings include the Breathwrk app focused on breathing exercises, which the company acquired in September; 10 micro-stores in the U.S.; a retail partnership with Johnson Fitness & Wellness, which has 100 locations in the U.S.; Peloton Pro Series products built for commercial environments like hotel gyms and multi-residential buildings; and a loyalty and recognition program called Club Peloton, which was launched in October and has seen engagement by 500,000 members.

“We believe we offer an unmatched ecosystem of products and experiences to help our members invest in their health and wellbeing,” Stern said.