Peloton is going to have to take a little break from patting themselves on the back for having so much success during the pandemic to take care of what is a very big problem.
The company announced Wednesday that they are recalling every single treadmill they have sold. It’s a total voluntary recall that comes after a couple weeks of discussions with the U.S. Consumer Product Safety Commission.
The problem and cause of the recall is one person has been killed and dozens of people have been injured by Peloton treadmills, and the company apologized for taking so long to take action.
Here’s the statement from CEO John Foley.
“I want to be clear, Peloton made a mistake in our initial response to the Consumer Product Safety Commission’s request that we recall the Tread+, we should have engaged more productively with them from the outset. For that, I apologize.”
The situation seems pretty serious, as the company has advised their customers who own the Tread or Tread+ to stop using it immediately, and contact Peloton so they can give those customers a full refund.
The numbers are big. The Tread+ machine is popular, with 125,000 machines in the market and 1,50 Tread machines.
Here’s the specific problem. 18 reports have been filed to report touchscreen loosening and there have six other reports about the touchscreen falling off the Tread.
The U.S. Consumer Product Safety Commission said the Peloton treadmills are designed much differently from their peers.
The company raked in $1.8 billion in revenue in 2020 but the stock price is down 40% from last year at this time.