Peloton offers connected bikes and treadmills. The company went public in September 2019, raising USD 1.2 billion at its IPO at a valuation of around USD 8 billion. Peloton offers two models of bikes; “Peloton Bike” (priced at USD 1,745) and “Bike+” (USD 2,495). Bike+ is equipped with a larger touchscreen and a high-fidelity sound system. Peloton’s running treadmill offerings include “Tread+” (USD 4,295) and a more compact version called “Tread” (launched in early 2021 at USD 2,845). It also offers a connected strength training product named “Peloton Guide” (USD 495), a camera with machine learning capabilities that can be connected to a home TV for a connected fitness experience. Peloton ventured overseas, launching its products in the UK and Canada in 2018, Germany in 2019, and Australia (only the bike models) in July 2021. As of December 2020, Peloton operated close to 100 retail stores in the US and around 40 more globally.

Peloton’s all-access membership for its fitness products (USD 39 per month) includes instructor-led live and on-demand classes, scheduled workouts, scenic rides and runs, access to leaderboards, real-time performance tracking, and game-based workouts (available for bikes, with the beta launch planned for late 2021). Users can also access on demand off-equipment workouts including yoga, Pilates, barre, meditation, and boxing. It also offers 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 September 2021, Peloton had 6.2 million total subscribers, including digital-only customers, and a total of 2.5 million connected fitness subscribers. Peloton also offers a corporate wellness program dubbed “Peloton Corporate Wellness” to include corporate users, in addition to home users, and its subscribers include UnitedHealth, Samsung, SAP, Wayfair and Accenture Interactive. Peloton’s FY2021 (FY ending in June) revenue doubled year-over-year (YoY) to USD 4.0 billion, with the fitness equipment sales accounting for 78% of revenue while subscriptions accounted for the remainder. Revenue growth was driven by the strong demand for its fitness equipment amid the Covid-19 pandemic. The company reported an adjusted EBITDA margin of 6.3% for the year.

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), aiming 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). In line with the acquisitions, in June 2021, it was reported that the company is working on releasing a heart rate monitoring armband to track the intensity of workouts. The device is said to be available in two sizes and would connect to Peloton’s bikes, treadmills, and its fitness apps. In May 2021, Peloton announced plans to build the first of its own manufacturing facilities in the US, in Troy Township, Ohio, investing USD 400 million. The facility’s construction is set to commence in mid-2021, with commercial operations expected to begin by 2023. As of May 2021, the company has been manufacturing fitness equipment in third-party facilities in Asia. Peloton intends 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.

The company has faced several lawsuits and safety issues in recent years. In February 2020, Peloton settled a lawsuit filed for using copyright-protected music. Upon settling, Peloton partnered with music publishers and artists to add tracks to its music library. In May 2021, it recalled its treadmills and halted treadmill sales in the US following safety concerns highlighted by US authorities, which also resulted in lawsuits filed on behalf of its investors. However, Peloton announced fixes and re-launched the Tread treadmill in late 2021.