Peloton
Peloton is creating its first connected fitness products specifically for gyms and other commercial premises.
Key details:
- Company created a dedicated commercial business unit last year with acquisition of Precor
- Peloton Commercial Series will offer dedicated equipment for high-traffic gym floors
- First products are connected bikes and treadmills
- Peloton’s commercial business unit has also launched equipment for less intensive environments such as hotels and country clubs
Context:
Peloton’s rapid growth during lockdown was based on a combination of expensive proprietary hardware and associated subscriptions. But the post-pandemic world was less kind to the company, necessitating a drastic cost-cutting programme and strategic rethink.
The company is now focused on securing as many subscribers to its fitness platform on as many devices as possible, with dedicated equipment a secondary consideration.
However, it senses an opportunity to expand its presence in commercial environments. Gyms can invest significant sums in equipment and are constantly seeking new experiences to keep customers paying their monthly fees or prevent them from defecting to competitors.
Meanwhile, Peloton users in gyms might be tempted to take out a subscription for their personal devices.
After a painful period of contraction and refocus, Peloton continues to improve its profitability and remains a leader in the connected fitness category it once pioneered.
Comment:
“The introduction of the Commercial Series makes one thing very clear: Peloton is going to the gym,” said Peloton chief executive Peter Stern. “We are bridging the gap between the home and the gym by pairing our world-class digital experience and design with some of the most durable hardware on the market—ensuring everyone has the opportunity to experience the magic of Peloton including our best-in-class instruction, wherever they choose.”
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