Merely a week after reporting its wort quarter to date, it appears that the bad news for Peloton Interactive (NASDAQ: PTON) continue to pile up. The fitness company has seen a significant decline in its app usage, as customers are not only beginning to return to gyms and workout classes, but are also losing confidence in the safety of the company’s equipment.
According to Forbes, which cited data from app intelligence service Apptopia, usage of Peloton’s app plummeted 42% in the past four months, as a safety investigation, treadmill recall, and easing of restrictions at gyms and workout classes drag down on the the popularity of the company’s exercise equipment. The decline has been substantial from month to month, but, as Forbes notes, August did witness a relatively smaller decrease.
Although it is expected that with the reopening of the economy an increasing number of fitness fanatics would return to their pre-pandemic workout regiments, Forbes suggests that there are other forces behind the Peloton app’s usage decline. Indeed, it could be a sign that its workout equipment is losing its luster with consumers, because the company’s competitor, iFit, only saw its app use fall by 16.5% during the same period.
“Peloton has a lot of work to do to reassure customers that its products are safe, to settle existing lawsuits, and to rebuild its product portfolio in safe and attractive way,” wrote Forbes contributor John Koetsier.
Information for this briefing was found via Forbes. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.