Peloton will no longer be manufacturing its own bikes

Peloton Interactive will stop making its own bikes. Instead, the company is expanding its current relationship with Taiwanese manufacturer Rexon Industrial Corp.

Peloton Interactive wants to simplify its supply chain and focus on technology and content, the company said in a press release. Peloton Interactive bought Taiwan fitness manufacturer Tonic Fitness Technology, Inc. in 2019. However, the company will suspend operations there for the remainder of 2022.

Rexon, a leading Taiwanese manufacturer with more than 50 years of experience, has partnered with Peloton Interactive for many years, Andy Rendich, director of Peloton’s supply chain, said in a statement. “We intend to maintain a significant corporate and manufacturing presence in Taiwan with more than 100 members of the Taiwan Platoon team continuing to play a key role in our engineering and manufacturing strategy,” he said.

The actions of Peloton Interactive fallen earlier this year, after a CNBC report, citing company internal documents, said the company was suspending production of its home fitness equipment due to declining consumer demand.

The company became ultra popular in 2020, when gyms closed due to the pandemic, creating a shift towards home workouts.

But as the pandemic led to widespread popularity for Peloton, the company struggled to keep up with unprecedented demand for its products, leading to delivery estimates of months and deadlines. Lost shipment from its factories to Taiwan.

In 2021, the company invested $ 100 million to try to appease thousands of frustrated customers who said they had been waiting months for their Platoons.

Other incidents have also affected the company’s image. In October 2020, recalled the company about 27,000 bikes sold nationwide to replace pedals that can break and cut riders ’legs.

And in 2021, Peloton Interactive recalled both its Tread + and Tread tapes after more than 70 incidents, including the death of a child and 29 other cases in which users suffered injuries such as bone fractures and cuts, the company and the U.S. Consumer Product Safety Commission said.

Peloton Interactive apologized he initially refused to remember his treadmills after death and wounds.

“We were wrong in our response. We should have been more open to productive dialogue from the outside, and for that I apologize,” said John Foley, CEO and co-founder of the company in a call from results with Wall Street analysts. Thursday.