If Peloton was on one of its own bikes after its latest earnings release it would be being implored to pedal faster.
“The company has seen strong demand in lockdown – a once in a lifetime opportunity for the business which it is danger of squandering as its supply chain falls off.
“It just can’t keep up with the clamour for its technology-enabled exercise machines and fixing the problem is going to impede profit.
“People are stuck indoors, unable to get to a gym and now feels like a time when they might consider taking out a monthly payment plan or doling out the upfront cost to get hold of one of Peloton’s machines and replicate the gym experience at home.
“In a few months’ time, assuming lockdown restrictions are eased, the situation might look quite different, with people actually able to enjoy fresh air while they cycle or go back to working out in public.
It’s no wonder Peloton is prepared to sacrifice profitability in the short-term to ensure customers aren’t left waiting too long.
“Without its machines the company has very few barriers to entry – competitors with big pockets are only too keen to move onto the turf of offering exercise classes online.
“It needs to create really strong user loyalty and that means the pressure is on to execute, particularly at a time when it has a real chance to reach more people than normal.
“If it doesn’t Peloton could see the momentum built up through the pandemic deflate like a slow puncture.”