Sumary of Can Peloton Finally Overcome Supply Constraints?:
- The demand spike was of course related to the ongoing coronavirus pandemic and people’s reluctance to engage in public activities at the moment..
- One part is the increase in demand for its products, and the other is the increase in demand for shipping services to the U.S..
- The good news for shareholders is that the company has adjusted to changing economic conditions and is now better at meeting the demand..
- Paying for premium shipping Order backlogs and delivery delays were beginning to generate negative publicity for Peloton in recent months..
- Customers were complaining about long wait times and canceling orders in response to changes in shipping dates..
- “We are investing over $100 million, and [using] expedited shipping to reduce the wait times for our products,”.
- Progress on this front is perhaps one reason management felt confident enough to expand its product availability to Australia starting in the second half of 2021..
- Peloton management is also hoping the closing of its acquisition of Precor, a manufacturer of exercise equipment with two factories in the U.S., will allow it to increase production capacity….