Peloton is pausing production of its bikes and treadmills in February-March, according to internal documents obtained by CNBC.
Peloton has essentially guessed wrong about how many people would be buying its products, after so much demand was pulled forward during the coronavirus pandemic. It’s now left with thousands of cycles and treadmills sitting in warehouses or on cargo ships, and it needs to reset its inventory levels.
Check It Out: Peloton Pauses Production of Bikes, Treadmills Over Decreasing Demand
I feel like any fool could have seen this coming. A) There are so many people in the world who can afford $1,500 exercise bikes and pay for a subscription on top of it. B) Unless you’re a celebrity, people want to be around people, which means… C) With gyms catering to every type of consumer on every other street corner, and fees as low as $20 per month, it’s kind of hard to compete with them.
Or you can do brisk walks and jogs with the dog like I do.