I'm sure a lot more than 1% have failures or serious issues. Their own website says:
- Bent Disc rotors, or other. (more common) 5%
- Component breaks in transit or assembly. (less common) 3%
- Software/firmware glitch missed in testing. (least common) 2%
And that's just scratching the surface.
There was another post earlier the same day where someone was claiming that Ride1up was slow in assisting with his bike getting repaired, wouldn't say how much he would be reimbursed to get a repair done by the LBS, and then when the bike shop charged him, Ride1Up didn't reimburse him for the full bill because they said it was too much. It sounded like he was having a lot of problems. It was an interesting read, but it apparently got deleted a while later.