Peloton is rolling out a software fix for its Tread and Tread+ treadmills after a massive recall.
Customers can now access a new "Tread Lock" feature that requires a four digit code before using the treadmill and locks the machine after 45 seconds of inactivity outside of a class. Peloton states on the feature's that users will "be required to set up Tread Lock" following an automatic software upgrade.
The fix applies to both of Peloton's treadmills: The $4,295 Tread+ and the $2,495 Tread. However, the cheaper machine which wasn't yet released in the United States, will have the feature by the end of June.
Earlier this month, Peloton recalled 125,000 treadmills following a child's death and 70 other injuries tied to the machines. The fitness company initially denied Consumer Product Safety Commission's request to issue a recall and claimed it was safe as long as its recommendations were followed.
Since the recall is voluntary, some members are keeping theirs. Peloton announced this software update during its May 6 earnings call and said it was working on a hardware fix. In the meantime, both the Tread+ and the Tread are no longer on sale and deliveries for older orders have been halted.
Peloton is taking a substantial financial hit from the recall: about $165 million in lost revenue during the current quarter, The company said $50 million in lost revenue would come from refunds to owners of the treadmill who want to return them, roughly 10% of the units that are already in the hands of customers.
The company is even paying to have someone move the treadmills from one room of an owner's house to another if they would prefer that option instead of having it returned to the company.
