The rise and fall of Peloton: Exercise bike firm recall 2.2m bikes

Has Peloton run out of road? As exercise bike firm issues mass safety recall, inside the company that made owners overnight millionaires – but was hit when Sex And The City’s Mr Big died riding one

• Peloton enjoyed huge success over lockdown but has seen shares plunge since

When the pandemic hit in 2020, Peloton enjoyed overnight success when millions of spin enthusiasts around the globe raced to buy its at home exercise equipment.

The company was already riding high off an extremely successful IPO, which went it went public in 2019 saw employees sip champagne and eat seafood as many toasted becoming millionaires overnight.

The company began hiring rapidly and released new products, while spending thousands to get bikes delivered to customers as fast as possible.

But things have not been as rosy for the Peloton tycoons lately amid a series of product recalls, safety investigations and negative portrayals in popular TV programmes.

Its shares nosedived when a return of Sex and the City saw one of its characters, Mr Big, collapse and die of a heart attack shortly after a 45-minute session on one of the exercise bikes – followed shortly after by a similar scene in the show Billions.

And now customers are fearing for their safety after it recalled more than two million of its exercise bikes over a safety hazard which could cause falls and injuries.

Peloton co-founder John Foley, with his wife Jill, pictured in November 2018

Peloton sought to bring spin workout classes into customer’s living rooms

The company issued the recall for around 2.2million of the Peloton Bikes Model PL01, sold from January 2018 to May 2023 for about £1,117 ($1,400), after it received 35 reports of the seat post breaking and detaching from the bike during use.

Shares in the New York-based company fell by more than seven per cent when the news broke, marking a sharp blow for the fitness brand that has seen its shares plummet by 39 per cent over the last 12 months.

It is the latest in a number of product recalls, safety investigations and PR disasters for the exercise bike brand, which enjoyed huge success over successive lockdowns.

The company was on a high in the late 2020 during the pandemic, when stay at home dictats saw its revenue more than double to £1.45bn ($1.82bn) – and peaking at over £3.19bn ($4bn) a year later. 

Mr Big seen exercising on a Peloton bike in Sex and the City 

Mr Big, played by Chris Noth, died of a sudden heart attack, shortly after exercising on a Peloton bike

But its shares plunged when Mr Big collapsed and die of a heart attack shortly after a 45-minute session on one of the exercise bikes in Sex and the City.

The scene, starring Carrie Bradshaw’s longtime love interest, saw Peloton’s share price plunge by 11.35 per cent just hours after the episode ‘And Just Like That’ aired. 

After an intense workout, Mr Big headed to the shower, when suddenly he clutches his shoulder and collapses, as Carrie – played by Sarah Jessica Parker – states in voice over, ‘And just like that Big died.’  

Peloton spokesperson Denise Kelly confirmed that the company approved the portrayal of a fictional instructor in the episode, but ‘due to confidentiality reasons, HBO did not disclose the broader context surrounding the scene to Peloton in advance,’ Kelly said.

It meant that while Peloton knew that their bike would be featured in the episode, but did not know how prominently it would be shown, nor that Mr Big would die.

Following the episode, Peloton issued a statement through Cardiologist Dr Suzanne Steinbaum, insisting that Mr Big riding a Peloton bike would have helped delay his fatal heart attack. 

The brand faced something of a déjà vu moment after a scene in ‘Billions’ that saw fictional character Mike Wagner, played by David Costabile, nearly suffering the same fate as Mr Big.

Wagner is seen in the episode getting off the bike and refuting to other characters that he is having a heart attack, despite describing symptoms like shortness of breath and jaw discomfort.

He is rushed to an ambulance and soon recovers, however, only to make a grand entrance in the next scene and proclaim, ‘I’m not going out like Mr. Big.’

But Peloton didn’t seem to appreciate the quip, taking to Twitter ahead of Sunday’s on-air premiere to say that the company did not give consent for its brand or equipment to be used in the show.

In 2021, Peloton shares plunged 24 per cent after the company reported a net loss of £300 million ($376m) in its third quarter, as the company struggled to recover from a voluntary treadmill recall sparked by an infant’s death and 29 other injuries. 

READ MORE: Could YOUR Peloton kill you? After bike was at the center of a shocking death in And Just Like That, Femail reveals how the pricey home gym equipment has been linked to several real-life tragedies (and how to use it safely)

It came off of the back of a three-year high for the company, which before Covid had enjoyed huge success with its exercise bikes and subscription-based virtual workout classes as people could not access gyms.

When it was went public in September 2019, many of its employees found they had become millionaires overnight.

After toasting their successes with a feast of seafood and champagne at Hudson Yards in New York, Peloton began to spend exorbitantly to keep up with customer demands and stay ahead of the market.

The company went on a hiring spree, invested hundreds of millions in a production factory in Ohio, but according to Forbes, the company ‘now has way too much stock sitting in its inventory’ after sinking its money into the product. 

Things began to go south as the pandemic ended and people began to return to their old gyms.

Its founder, John Foley stepped down as chief executive and was replaced in February 2022 by former Netflix and Spotify executive, Barry McCarthy. Since then, McCarthy has battled to turn the company around.

Foley – formerly a Barnes and Noble executive – started Peloton in 2012 with the aim of providing convenient alternatives to popular spin classes for well-heeled customers.

The result was a sleek stationary bike which came with a spin classes customers would participate in remotely.

Over the years Peloton grew a devoted following, and in 2019 employees made millions when its IPO earned the company a £5.75bn ($7.2bn) valuation.

The brand faced something of a déjà vu moment after a scene in ‘Billions’ that saw fictional character Mike Wagner, played by David Costabile, nearly suffering the same fate as Mr Big

The premiere episode of a Sex and the City reboot featured Mr Big on a Peloton

‘It felt like nothing could get in the way of all that,’ a former employee who attended a lavish IPO party told CNBC, which kicked off years of unforeseeable success as the pandemic launched the company’s value into the stratosphere.

As the company began to open up its coffers to meet demand, employees said leadership told them their success was only going to rise.

‘There was a lot of blind trust. We all were like, okay, let’s go,’ the same former employee told CNBC. ‘They always had this blind optimism where they were like, we’re going all the way to the top.’

The company began hiring rapidly and released new products, while spending thousands to get bikes delivered to customers as fast as possible.

But co-founder Foley faced criticism when he hired a number of ‘inexperienced’ executives, including his wife Jill.

Meanwhile, thousands were spent on hazard pay for delivery workers, and in certain regions as much as £400 ($500) was spent per-mile delivering bikes, excluding the price of importing products from their overseas factories.

By November 2020 sales had spiked a whopping 232 percent from the previous year, and that December at the height of the holiday season reached its all-time stock high.  

‘The majority of us, we weren’t naive to the fact that, especially in New York, there were people outside in refrigerated trucks because they didn’t have enough room in the morgue, but at the same time, we’re looking at our Morgan Stanley accounts and now we’re all worth, you know, millions,’ another former employee, whose net worth touched $5million while working for Peloton, told CNBC.

‘I don’t think any of us were rooting for the pandemic to continue, but as long as it was going on, it was obviously good for business, and it was good for a lot of people’s bank accounts.’ 

Peloton co-founder John Foley (pictured centre) celebrates with employees during the company’s IPO

Co-founder John Foley (pictured) stepped down as Peloton’s chief executive last year after share prices plummeted

But the pandemic which gave so much to the company also began taking its toll.

Despite the company’s expenses on logistics, some customers would be left waiting months for equipment they paid thousands for.

In response, Peloton hired more people, and spent more on getting bikes to customers.

To save on international shipping, the company invested £319million ($400m) into a building a factory in Ohio to build its products.

‘They were like, we have so much money, we’re unstoppable,’ a former employee said. ‘We just need to deliver the bikes, we just need to get the bikes into homes, we just need to do this.’

So many people were hired, some employees said they didn’t have anything to do.

As the company continued pouring money into its booming sales, the severity of the pandemic began to wane, normal life started to resume, and people began to return to gyms as vaccines became widely available.

Sales slowed, revenue declined, and by December 2021 its stock was worth just £28 ($35) per-share from its £133 ($167) high a year earlier.

‘We were trying to catch up and spending, spending, spending to catch up, and by the time we finally caught up, demand fell off,’ A former employee said. ‘Over time we kind of saw how the company responded to the pandemic and then misread the pandemic. It was kind of like, wow, it kind of feels like we got sold down the river.’

Earlier that same year, the company was forced to issue a warning to parents to keep children away from its treadmills after the death of a child in a ‘tragic accident’.

By March 2022 Peloton had net-losses of £604million ($757.1m), and by the end of its fiscal year in June those losses had reached nearly £2.39billion ($3bn).

Former Netflix and Spotify executive, Barry McCarthy, became Peloton ‘s chief executive last year

Pictured: Peloton Studios in New York

As losses grew to staggering heights, Foley stepped down from his leadership position and was replaced by McCarthy in February 2022.

He began cutting jobs, shuttered the Ohio factory project, outsourced its logistics operations to third-party businesses, and announced plans to close more than a third of its retail stores worldwide.

Despite the massive cuts, employees said they felt they were finally in responsible hands under McCarthy’s leadership. 

‘He seemed the polar opposite of John,’ a former-employee told CNBC. ‘I think everyone was kind of like, OK, this is a real legitimate business guy with a solid background.’

‘We were all hopeful. I was certainly hopeful with his acumen and experience, but I knew it was going to come with some very hard decisions.’

McCarthy’s tactics have been promising, with the company’s stock rising 26 percent in February following promising second-quarter numbers.

The company has also started focusing its efforts on its digital classes as it discovered roughly half of its subscribers were using the platform on non-Peloton bikes or equipment.

Could YOUR Peloton kill you? After bike was at the centre of a shocking death in And Just Like That, Femail reveals how the pricey home gym equipment has been linked to several real-life tragedies (and how to use it safely)

The safety of Pelotons, the immersive home workout experience with virtual classes that claims to rival a full gym membership, has been thrust back in the media spotlight following a shocking storyline in the Sex And The City reboot. 

In the first episode of ‘And Just Like That’, Carrie’s husband Mr Big (Chris Noth) dies of a heart attack shortly after a 45-minute session on a Peloton Bike, the piece of high-end home gym equipment – prices starting at £1,350/$1,495 – that’s become a must-have in affluent homes. 

The brand has also been hit with real-life tragedies, mainly concerning its $2,400 treadmill, the Tread+, which was only released in the US and has since been recalled. 

A six-year-old in the US died in an accident in March, although details have never been released. Another incident saw a three-year-old child, who went on to make a full recovery, suffer head injuries after becoming trapped underneath the machine. 

Other children have reported ‘burns’ or abrasions, with the family of one three-year-old boy pulled under a Tread+ treadmill saying he will be scarred for life. 

In the UK, Peloton customers have reported minor injuries resulting from the use of the £2,295 Tread treadmill, resulting from the screen falling off.  

The safety fears have cast a cloud over the success of the brand, which soared during lockdown when people couldn’t access gyms.

Peloton’s popularity, which soared during lockdown when people couldn’t access gyms, has taken a blow in recent months over safety fears, mainly concerning its $2,400 treadmill, the Tread+, pictured, which was only released in the US and has been recalled

Jocelyn Ratliffe, 6, suffered from severe abrasions to her legs after being sucked under a Peloton Tread+, her father revealed in April, sharing this photo on Good Morning America

It was dealt another blow following the release of the And Just Like That premiere – with shares tanking 11.35 per cent since the show aired at 12.01am PT in the US. 

US product safety regulator, the CSPC, first raised concerns about the safety of the Tread+, which is not available in the UK, on April 17, and called on Peloton to recall it. 

The death of the six-year-old child had been made public by the company the previous month. 

Regulators said they needed to ‘warn the public quickly of the hazard’ after nearly 40 incidents have come to light of children becoming ‘entrapped, pinned, and pulled under the rear roller’ of the Peloton Tread+. 

At the time, Peloton CEO John Foley resisted this request. 

However on May 5 Peloton announced a US recall on the Tread+ because of these issues, and acknowledged that it had made a mistake in its initial response. 

It simultaneously recalled the Tread, which is available in both the US and UK, due to the Tread’s faulty display, which had fallen off and caused injury.  

Some 12 minor injuries such as abrasions, cuts or bruises linked to use of the Tread had been reported in the UK at the time of the recall. 

The safety of the brand’s popular exercise bikes have also been put under scrutiny.

In 2020, 27,000 Peloton Bikes in the US had to be recalled because of a pedal safety issue. 

The Peloton Tread remains on sale in the US and the UK. The Tread+ is currently not available in the US. It was never revealed in the UK. 

Customers can still shop the Peloton Bike and the Peloton Bike+ in the US and the UK. 

Peloton has explained how children and pets should be kept away from Peloton and other home exercise equipment at all times.

The equipment is not designed for use by children. 

THREE-YEAR-OLD BOY LEFT WITH THIRD-DEGREE BURNS

The three-year-old boy suffered third degree burns to his back and sides after he became trapped under a Peloton Tread+ in Brooklyn, New York last year

A three-year-old boy suffered horrific third-degree burns after getting trapped underneath a ‘defective and dangerous’ Peloton treadmill, a lawsuit filed in July claimed. 

Sarah and Ygal Saadoun, of Brooklyn, New York, filed a lawsuit against Peloton in New York State Supreme Court regarding the severe injuries their son suffered. 

They claim their son was sucked under the Peloton Tread+ in July last year 2020. The boy became trapped under the treadmill’s ‘rotating belt’ and it continued to run while he was underneath it, the lawsuit says.  

He suffered third degree burns to his back and sides as a result of the incident. 

The little boy has been left with permanent scarring and disfigurement, as well as ‘shock, emotional distress, pain and suffering’, according to the lawsuit.

The Saadouns argue that Peloton knew, or should have known, that the treadmill was ‘extremely and unreasonably dangerous’. 

Safety regulators had issued a warning about the model back in April, urging people with children and pets to immediately stop using the Tread+ after one child died and dozens were injured.

They released released footage that showed how one boy became trapped head-first under the running treadmill before eventually wriggling free.

The fitness company then recalled about 125,000 of the Peloton Tread+ models and agreed to stop selling them the following month. 

The Saadoun family are seeking unspecified damages from Peloton as a result of the boy’s injuries. 

DEATH OF A SIX-YEAR-OLD CHILD

Peloton co-founded and CEO John Foley shared news of the fatality in a letter addressed to owners of Tread+ in March. He urged customers to exercise caution when using the equipment

In March 2021, Peloton CEO John Foley revealed in a letter to customers that a six-year-old child had died in an accident involving Peloton’s Tread+ treadmill.

No details of the child, their family, or how the accident occurred have been made public. 

However, it did prompt Mr Foley to urge parents to keep children away from Peleton exercise equipment. 

‘While we are aware of only a small handful of incidents involving the Tread+ where children have been hurt, each one is devastating to all of us at Peloton, and our hearts go out to the families involved,’ Foley wrote.

Foley, who is also a co-founder of Peloton, went on to share the company’s standard safety warnings, among them keeping children and pets away from exercise equipment at all times, and removing the safety key from the treadmill at the end of a workout.

‘We design and build all of our products with safety in mind,’ Foley stated. 

‘But in order to help ensure that you and your family members stay safe with Peloton products in your home, we need your help. 

‘This is especially true during what I hope is the final stretch of the pandemic where everyone is still at home.’

CHILD DRAGGED UNDER A PELOTON WHILE PLAYING

In April US federal regulators released a terrifying video of a child being dragged under a Tread+ treadmill as they warned consumers to stop using the equipment. The child, seen bottom right, was pulled under the treadmill while it was in use 

In April US federal regulators released a terrifying video of a child being dragged under a Tread+ treadmill as they warned consumers to stop using the equipment. 

In the harrowing video, a little girl is seen walking on the treadmill which is turned on. 

A little boy then walks behind the exercise machine and picks up a big pink ball. 

He holds the ball toward the back of the treadmill and the ball is seen being pulled under the machine, dragging the boy’s arms with it.

This appears to cause the treadmill to stop moving as the boy’s arms lift the machine slightly off the ground.

The little girl gets off the treadmill and dashes off out of view, while the boy appears to be stuck. 

The treadmill moves again, slowly at first as it appears the boy is trying to resist it moving and pulling him further under the equipment.

At this point, the power of the machine appears to cause the little boy to shake and suddenly the treadmill resumes a faster speed, dragging the boy further underneath to his head.

He continues to be pulled under more and more until only his legs are sticking out as he appears to thrash his legs in an attempt to free himself.

The boy manages to pull himself back out from underneath the treadmill which continues to move and he is seen walking out of view away from the machine. 

Peloton has explained how children and pets should be kept away from Peloton and other home exercise equipment at all times. The equipment is not designed for use by children. 

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