Peloton will stop making its bikes and treadmills and will outsource both product lines to Taiwanese manufacturer Rexon Industrial Corp. as it works to reduce costs.
Peloton will stop making its own interactive stationary bikes and treadmills, outsourcing those duties to a Taiwanese manufacturer as it attempts to revive sales that surged during the pandemic. The New York City company, which recorded its only profitable quarters during the pandemic, is seeking to lower costs after sales slid when gyms began to reopen and cheaper knockoffs entered the market.
From Bloomberg: The move is an about-face from Peloton's strategy over the past three years, when it split manufacturing between its own facilities and partners. The company previously canceled a plan to build its equipment near Toledo, but now it's walking away from in-house production altogether.
Peloton will stop making its own interactive stationary bikes and treadmills, outsourcing those duties to a Taiwanese manufacturer as it attempts to revive sales that surged during the pandemic.