CORAL GABLES, FLORIDA - JANUARY 20: A Peloton showroom displays bikes and treadmills on January 20, 2022, in Coral Gables, Florida. Reports indicate that Peloton Interactive Inc is temporarily halting production of its bikes and treadmills after a drop in demand for the products.
Peloton issued a recall for 2.2 million bikes Thursday morning, May 11, due to a potential safety issue with the seat. Recalled exercise bikes should not be used right away, as instructed by the manufacturer.
This situation caused the at-home exercise company's shares to drop to their lowest level in seven months. This is the company's latest recall, which comes after four rounds of layoffs last year.
Recall Issued Following Complaints of Injuries
Having the seat post assembly fail in the middle of a ride might leave riders exposed to falls and injury. The bikes in issue are the Peloton PL01 type, and the firm is providing free maintenance. Customers are urged to get in touch with Peloton in order to acquire a new seat post that may be installed in their homes.
In a report by CBS News, the Consumer Product Safety Commission has received 35 complaints of the seat post breaking and falling apart from the bike during rides, leading to 13 claims of injury. They range from a broken wrist to cuts and bruises sustained when falling off the bike.
According to Kaitlin Wowak, a recall expert and associate professor of IT, analytics, and operations at Notre Dame's Mendoza College of Business, "It appears that Peloton may be learning from its past recalls by being more collaborative with the US Consumer Product Safety Commission and responding faster than it had with previous product safety issues, such as its treadmill recall."
Still, she noted that customer trust in Peloton's goods might take a big hit in the future due to the company's many product safety problems, particularly those related to reports of serious injuries.
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Shares Slumped After Another Recall
Previously, Peloton had to recall 27,000 of the first-generation bikes due to broken and sharp pedals. About 126,000 Tread and Tread+ treadmills were recalled in 2021 after some children were hurt using the machines. One was killed after being trapped beneath the back of the treadmill.
After the recall was issued, Peloton shares plummeted.
In premarket trading on Thursday, Forbes noted that Peloton's stock dropped 7.1% to $7.01. It is a 13.8% decrease since the start of the year and a 95% drop from its December 2020 record.
How to Acquire a New Seat Post?
Peloton is providing free new seat posts for Bike owners in the US. To buy one, just visit the website of Peloton and fill out an online form.
The cycling equipment manufacturer claimed a repair visit was unnecessary and instead sent a video demonstration on how to swap out the seat post. According to CNET, the replacement seat post appears to be easily accessible, and the instructions suggest that installing it will not take more than a few minutes.
