Peloton is seen to many as an interactive exercise bike, but it is way more than that, it is a community of likeminded people, state-of-the-art equipment and the world’s leading coaches and classes. The presence of COVID-19 has showcased its true potential and the fitness industry are taking note. Peloton Founder and CEO, John Foley describes the business as “Covid-proof” and “recession-proof” as reported revenues were up two thirds in Q1 of 2020. At the height of the pandemic 1.1 million users signed up in just 6 weeks, sending share prices to a record high. (Financial Times, 2020)
Peloton uses technology and design to connect the world through fitness, empowering people to be the best version of themselves anywhere, anytime.
In a year of pivoting and adapting to every and any eventuality, Peloton have already built a community to be admired. Peloton’s vision finds a solution to MyFitnessPal Founder, Mike Lee’s note on the importance of linking digital and human elements together, bringing a great community feel, the world’s best trainers, coaches and classes into the home.
Additionally, with the diversity from bikes into tread, strength, stretching, outdoor and walking they aim to be a “total mind and body fitness solution” according to Tom Cortese, Co-founder, Chief Operating Officer & Head of Product Development.
Tom continues to explain the ethos of Peloton is to get as many people as possible to work out as often as possible, motivating customers to engage with the brand. Opposed to the majority of the global spend in health and fitness, which goes towards gyms and boutique studios, who tend not to have a good alignment of incentives for their members. This model focuses on over subscription, getting as many sign ups as possible, and hoping that only a percentage use the facility. Pelotons model continues to work and improve as the average member participates in 24 workouts per month, a 100% increase on the previous year.
The Peloton product is so unique as it offers daily recorded classes and workouts keeping everything as relevant as possible, from the latest music being played to the latest topics being discussed… it allows the business to adapt to external factors and brings an engaging community spirit.
When asked regarding competition to Peloton, with Apple and others entering the market with fitness platforms, Tom commented that it’s actually a great validation on everything they’ve worked hard to achieve over the last 9 years.
“Because of our DNA and understanding consumers we think we are light years ahead of any competition”
Peloton, day in and day out look and work towards the future of fitness and the business has accelerated due to COVID-19 with their global membership base hitting 3.1 million at the end of June 2020. Giving an overview, Tom concluded with highlighting how they’re in a great position within the market, sitting between two trends of convenience and the growth of fitness and wellness.