Business Wars The Rise and Fall of Peloton | Maximum Effort | 2
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Oct 15, 2025 The pandemic catapults Peloton's stock, leading to a frantic surge in product demand and supply chain headaches. A tragic incident with the Tread Plus sparks a safety crisis and costly recalls, shaking consumer trust. In the wake of a leadership change, the new CEO focuses on subscriptions, massive layoffs, and shifting manufacturing strategies. Despite a rocky financial landscape with billions in losses, an AI-driven approach and new partnerships aim to stabilize the brand. Peloton's journey sees ups and downs as they seek to reclaim their footing.
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Crisis Pushes Costly Delivery Choices
- John Foley and an employee debate spending much more to fix final-mile delivery during summer 2020.
- Foley insists “This is our moment” and urges spending to meet soaring pandemic demand.
Differentiate Spike From Structural Growth
- The pandemic spike revealed product-market fit but not guaranteed structural growth.
- Smart companies separate temporary demand surges from sustainable, long-term growth.
Acquisition To Shorten Supply Lines
- Peloton bought Precor for $420 million to bring manufacturing to the U.S. and boost capacity sixfold.
- They also started flying bikes from Taiwan to speed deliveries around port delays.