Orders were flooding in from areas under lockdown at such a rate that Peloton halted all its marketing in the U.S. The customers kept coming. Covid-19 “changed everything for Peloton,” says Lynch, the former Barnes & Noble Inc. chief executive who’s been the company’s president since 2017. “We saw what was already a rapidly growing business just explode.”
It’s awkward: booming growth while the novel coronavirus has ravaged families and caused economic upheaval. But Lynch says a broad shift to at-home workouts, which underpins Peloton’s whole business model, was under way well before 2020; the pandemic just sped it up. Now he and his colleagues are working to convince the world that Peloton’s momentum will continue once the virus eventually subsides.
Last year the company introduced a new bike and cut the price of its old model by 15% to $1,895 (not including the $39-a-month membership). It introduced programs tailored to people who don’t have free weights or a Peloton bike, like barre and dance cardio, and added classes for pandemic-sheltering families with kids. And it’s making a big push to sell treadmills, because there are far more runners than cyclists in the world.
Just a year ago, Peloton skeptics abounded, citing the many companies that have peddled a wide range of home workout equipment in recent decades but struggled to make anything stick. Peloton’s shares fell 11% in their first day of trading in 2019. At the time, it was losing 21¢ on every dollar of sales. And last March, just as the country went into lockdown, short seller Citron Research, which bets that companies’ stocks will fall, published a report saying, “the dream of Peloton becoming the official platform of home health will soon be a distant memory.” It said Peloton was worth $1.4 billion, or about $5 a share.
Continue reading your story on the app
Continue reading your story in the magazine
The Food Fight in Fake Meat
Beyond Meat was an early leader. But rival Impossible Foods and others want to eat its lunch
The U.K. Wants to Clean Up Space
The amount of debris in orbit is an increasing danger—and a potential market opportunity
Prices for a warehouse staple are at a record, buoyed by the boom in e-commerce
THE MAN WHO KEEPS THE FAR RIGHT ONLINE
While Amazon and its peers have stopped supporting certain prominent White supremacists and conspiracy theorists, Nick Lim has stepped in
Stopping the Race to the Bottom on Taxes
The U.S. is energizing a global effort to put a floor under corporate tax rates
The Guggenheims Of NFTs
Perhaps you’ve heard of nonfungible tokens? These collectors already have millions of dollars’ worth
Reincarnation And Realpolitik
China, India, and the U.S. are vying to influence the selection of the next Dalai Lama
WAITING FOR ELON
It’s not easy to compete with Miami and Austin for high-tech jobs. But Adelanto, Calif., which boasts a light regulatory environment, an enthusiastic city manager, and plenty of dirt, is giving it a shot
LAW & CRYPTO
Arthur Hayes faces U.S. prosecution over how he ran his overseas Bitcoin exchange
In Hot Pursuit
Chris Urmson’s company, Aurora, has merged with Uber’s self-driving unit to take on Waymo
What Makes Peloton, Apple, Netflix, and Tesla Successful?
They’re not just smart companies. They’re vertically integrated companies—and it’s a strategy even small startups can consider.
It's time to stop calling every firm that uses technology a tech company
Defining a company begins by looking at what it produces and sells, not at what enables it to do so.
Peloton, Spinning Faster Than Ever
Peloton accidentally built a fitness cult. A business is a little more complicated.
Meet the Cycling Startup that's Reinventing Studio Fitness
Peloton did everything wrong - and still reinvented the studio fitness industry.
HAVE YOU BEEN HOUSE TRAINED?
Pandemic restrictions have forced a revolution in the fitness industry: The hottest new gym is now no further than your living room
ESPEJITO, ESPEJITO… EN TU PARED
PELOTON NO ES EL ÚNICO DISPOSITIVO DE ACONDICIONAMIENTO FÍSICO EN EL HOGAR QUE, DE REPENTE, PROSPERÓ EN LA ERA DEL CORONAVIRUS. LA EXBAILARINA BRYNN PUTMAN AUMENTÓ SUS GANANCIAS 300 MDD CON UN DISPOSITIVO DE ENTRENAMIENTO INTERACTIVO QUE PUEDES COLGAR EN CUALQUIER LUGAR DE TU CASA.
El poder de la banda
Un aferrado corredor de exteriores encuentra que las máquinas y aplicaciones hacen que subirse a la cinta sea más divertido y efectivo (al fin).