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Got this email today from the Peloton CEO. It was a little odd since I already have a bike.

It's interesting that they're now expediting shipping but why have they waited until now?


I am writing this note because I want to speak directly to you about the challenges we’ve been facing these past several months and the meaningful investments we are making to address these challenges. Many of you have recommended Peloton to your friends and family and you care about the experience they are having.
As you may know, Peloton has seen heightened demand for connected fitness products since the COVID-19 pandemic began in 2020. For those of you who bought a Peloton Bike or Tread since last March, you likely experienced longer wait times than usual, and/or have had your delivery date rescheduled, which is obviously very frustrating. For that, I sincerely apologize.
Our team has been hard at work increasing the capacity of our supply chain. I am happy to report that we have ramped our manufacturing capacity by more than 6x in the last 12 months. For this, we are deeply grateful to our manufacturing teams and partners for their herculean efforts responding to this unprecedented demand.
Unfortunately, dramatically scaling our manufacturing capacity alone has not gotten us out of the woods. We obviously need to get the Bikes and Treads from our overseas production facilities into your homes, and that has also proved challenging in this environment. You may have read about the port congestion in Los Angeles and Long Beach, where shipping container volume has doubled in the last 12 months. The global increase in shipping traffic has added significant delays to all sorts of goods coming into US ports, including Peloton products. These unpredictable delays have resulted in painful delivery reschedules for many people as Peloton Bikes, Treads, and accessories have been held at Port for upwards of five times longer than usual. For that, I again apologize.
So what are we doing? Effective immediately, we are investing over $100 million to help expedite the movement of Bikes and Treads globally, in order to meet our delivery commitments. On average, in the coming months, we will be incurring a transportation and delivery cost that is over ten times our usual cost per Bike and Tread, including, in many cases, shipping them by air instead of by sea. We are making this investment because we are as frustrated as you are that you don't have your Peloton Bike or Tread yet. We are (and always have been) a company that is deeply committed to your happiness and we've fallen short of that in this regard. Please know we're working hard and spending aggressively to do right by all of you.
These unprecedented measures are for these unprecedented times. We will not always fly bikes in airplanes over the ocean. In addition to caring about our Members, we care about the environment and are committed to continuing to create more local jobs. Today we operate nearly 50 of our own dedicated Field Operations centers throughout the US, Canada, UK, and Germany. In these facilities, local Peloton employees assemble and test thousands of Bikes and Treads per day, right in-country. In the coming quarters, we plan to expand our US-based manufacturing operations on an even more impressive scale. I look forward to updating you about these efforts and how they help minimize global transport, promote local jobs, and increase our total capacity to bring innovative and engaging products to our Members.
If you are still waiting for your Bike or Tread, we hope you will begin your Peloton journey by downloading the Peloton App and joining our #OnePeloton community. We offer complimentary pre-delivery access to every Peloton class from your phone, tablet, TV and web browser so you can start your fitness journey. We have thousands of classes where all you need is your own body, such as yoga, strength, cardio, barre, outdoor running/walking, stretching, and meditation.
Thank you for choosing Peloton to stay active, centered, and connected. We will keep working non-stop to deliver on our promise to put you, our Members, first.
John Foley
CEO and Co-Founder
 

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They definitely do have a supply problem but their bigger problem in my mind is a customer expectation and communication problem.

For most people if you tell them a bike will take 8 weeks and you deliver it in 8 weeks or less they will be OK with that. The problem is that Peloton seems to often over-commit and miss expectations as well as doing a terrible job communicating with customers. There are way too many stories about customers being notified the day they are expecting delivery receiving a text or email that it has been pushed out a month or more.
 
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