While customers try to keep up with their instructors, Peloton is taking a necessary step to keep up with demand.
The at-home fitness company announced plans to build its first U.S. factory for $400 million, adding to its third-party manufacturers in Asia and acquired U.S. businesses.
Plans for the Ohio facility come after complaints of month-long shipping delays and a string of investments focused on meeting demand. Peloton reported its first $1 billion quarter this year.
- In February, Peloton said it would invest more than $100 million in air freight and expedited ocean freight.
- In December, Peloton acquired Precor for $420 million, one of the largest fitness equipment providers, providing access to Precor’s existing U.S. facilities.
- Peloton is also launching in Australia later this year.
CEO John Foley told Bloomberg in March that Peloton’s production capacity grew 700% over the last year.
Construction for the factory is expected to start later this summer, with production on Peloton bikes and treadmills slated to begin in 2023. The factory will add more than 2,000 jobs.
“The new Peloton Output Park gives us a massive strategic lever to make sure we have capacity, quality, and economies of scale in our bike and tread product lines,” said Foley.
Peloton recently recalled its treadmill after multiple reported injuries, including the accidental death of a child. The fitness giant was also accused of exposing user data.
In the quarter ending March 31, Peloton’s revenue hit $1.26 billion.