Peloton

Peloton offers connected bikes, treadmills, rowers, and fitness mirrors. Peloton offered two models of bikes: “Peloton Bike” (priced at USD 1,445 onward) and “Bike+” (USD 2,495 onward). Bike+ is equipped with a larger touchscreen and a high-fidelity sound system. Peloton’s running treadmill offerings included “Tread+” (USD 4,295) and a more compact version called “Tread” (USD 2,845).  Peloton also offers a low-impact connected rower called “Peloton Row” (USD 3,195) and a connected strength training product named “Peloton Guide” (USD 295; a camera with machine learning capabilities that can be connected to a home TV for a connected fitness experience). In addition to equipment, Peloton offers an armband (USD 90) that can be paired with other Peloton equipment to monitor heart rate (released in February 2022). Peloton ventured overseas and launched its products in the UK and Canada in 2018,  Germany in 2019, and Australia (only the bike models) in July 2021. Users can purchase equipment via Peloton’s website, showrooms (120+ locations globally; as of August 2022).

Peloton’s all-access membership for its fitness products (USD 44 per month) included instructor-led live and on-demand classes, scheduled workouts, scenic rides and runs, access to leaderboards, real-time performance tracking, game-based workouts, and podcasts. Users can also access on-demand off-equipment workouts including yoga, Pilates, barre, meditation, and boxing. It also offered an app-only membership with limited features for USD 12.99 a month or less for some subscribers including students and healthcare workers. As of June 2022, Peloton had 6.9 million total subscribers, including digital-only customers, and a total of close to 3.0 million connected fitness subscribers.

In December 2020, Peloton acquired the fitness equipment company Precor (deal finalized in April 2021) to gain US manufacturing capabilities and improve research and development (R&D), while it aimed to release a broader portfolio of products. In March 2021, the company also confirmed the acquisitions of Otari (reportedly acquired in late 2020), a developer of interactive workout mats with screens; Atlas Wearables (acquired in November 2020), a developer of fitness-oriented smartwatches; Aiqudo (acquired in February 2021), a developer of artificial intelligence (AI)-powered digital voice assistant systems; and intellectual property from Peerfit, a digital health company (in November 2020). 

Peloton also had plans to build its own manufacturing facility in Ohio (announced in May 2021), but they were abandoned in February 2022 amidst its restructuring plans and lowered demand. The company manufactures its fitness equipment in third-party facilities in Asia. Peloton intended to commence production in the US by the end of 2021 through manufacturing factories owned by its subsidiary, Precor, located in North Carolina and Washington.

Key customers and partnerships

In January 2024, Peloton partnered with TikTok , to enhance the reach of Peloton’s fitness workout content across the TikTok community. Peloton has ongoing retail and distribution partnerships with Amazon (selected products) and Dick’s Sporting Chain outlet (selected products). The company also offers a corporate wellness program that includes corporate users, and its subscribers include UnitedHealth, Samsung, SAP, Wayfair, Accenture Interactive, and Hilton Hotels & Resorts (for Peloton Bikes). 

Funding and financials

The company went public in September 2019 while raising USD 1.2 billion at its IPO at a valuation of around USD 8 billion.

Peloton’s FY2022 (FY ended in June) revenue had dropped 10.9% year-over-year (YoY) to USD 3.58 billion with fitness equipment sales accounting for 61% of revenue while subscriptions accounted for the remainder. The drop in revenue was a result of demand lowering to pre-pandemic levels.

In May 2022, Peloton raised USD 750 million in debt financing led by JPMorgan Chase. The company planned to utilize the financing to support its business plan that aims to improve the company’s financial performance and profitability through cost cuts, placing more emphasis on subscription-based revenue, and better supply chain management.