Project Tinman: Peloton’s bizarre plan to conceal rusting spin bikes
Executive coverup adds the latest plot-twist to the brand's weird unravelling
The never-ending saga that is Peloton keeps on getting weirder. After a series of less-than-desirable high-profile T.V. cameos to close out 2021 and open 2022, the fitness brand is going full Hollywood, but in real life.
The latest revelation, which comes courtesy of the Financial Times, exposes a executive-level cover-up code-named, and this is apparently not made up, “Project Tinman.”
The bizarre plan involved concealing rust build-ups on the frame of the boutique spin bikes. This was done by using a chemical solution that conceals corrosion by “reacting with the rust to form a black layer,” which would make the bikes appear normal.
The plan was apparently called Tinman because that sounded better than “Project Rust” would have. Or because, in The Wizard of Oz, the Tin Man was seized by rust. Though Baum’s Tin Man was searching for a heart, not trying to protect his profit margins.
The brand maintained that the rust build-up did not compromise the structural integrity of the bikes or pose any safety risks. The FT reports that at the same time as the brand continued selling the bikes to consumers, though, it prohibited the bikes from being sold to employees or their families and friends at a discount price.
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Project Tinman was originally hatched and implemented in September, 2021. The FT report suggests that the rust-treated bikes were still arriving in U.S. warehouses as recently as last week. Several employees suggested the shift in quality control was due to pressure to meet sales markers and fulfill supply. Early in the pandemic, Peloton struggled to keep up with demand for its exercise bikes.
The latest chapter in a busy year
Once again, the timing for Peloton couldn’t be worse. It comes amid tanking stock prices, the resignation of its co-founder and now ex-CEO John Foley, the firing of hundreds of employees and several top executives and the unplanned appearances on Sex and the City and Billions.
The timing of Project Tinman also lines up unfortunately well with when those same executives started selling off the brands stocks.
RELATED: SNL parodies Peloton with a bike for riders who need negative reinforcement
Peloton was probably hoping to open a new, more positive chapter for 2022. The brand hired a Barry McCarthy, the former Chief Financial Officer of both Spotify and Netflix, to replace Foley as its CEO. On Friday, it announced the long-awaited Lanebreak program, a gamefication of spin class, would finally launch. There were also rumors that Nike or Apple might buy the beleaguered brand, which had momentarily lifted the stock prices from their early 2021 lows.
The latest news will, in all likelihood, halt any progress in Peloton’s stock price’s recovery. If we’ve learned anything at this point, though, it is that this will not be the last, or weirdest chapter in the Peloton saga.
