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Peloton spins the wheels of its supply chain with a $100m injectionINTL

Peloton spins the wheels of its supply chain with a $100m injection

2020 gave Peloton (PTON) the best problem a business can have: too much demand. As COVID-19 forced the shutdown of gyms around the world, antsy fitness lovers scrambled to find alternatives, and Peloton’s stationary bike became one of the top choices.

As demand exploded, Peloton has struggled to fulfill orders. Customers are currently experiencing wait times of 8 to 10 weeks, more than double the time it took pre-pandemic and almost as long as you’d have to wait to get a booking at Clap in DIFC.

The company has blamed delays on supply chain issues across ports along the US West Coast. So, in response, CEO John Foley said last Friday that Peloton is “putting our money where our mouth is” by investing $100m to speed up air and ocean shipping and doubling the customer service support team. Hopefully, Peloton’s customer service support team also gets raises as it’s safe to say they’ve been the real MVPs during this debacle.

why it matters
Peloton's share price rose as fast as its demand last year. But, shares have been down more than 5% on Friday over the company's supply concerns. And so, it's about time the company took matters into its own hands to avoid damaging its long-term prospects.