image credit: Peloton
Peloton, the fitness company that sells indoor cycling bikes, reported a 66% increase in sales from a year ago to $524.6 million. As more people turn to home-based workouts during the coronavirus pandemic, companies like Peloton are finding opportunity to grow their subscriber base and gain market share.
The company sells a spin bike that retails for $2,245 and a treadmill that costs $4,295. In addition, users pay $29 per month to have access to live streaming classes. Total members grew from 2.0 million in the second quarter to 2.6 million in the third quarter, and last month Peloton held its largest class ever, with more than 23,000 people live streaming from home.
The beautifully designed bike, engaging instructors and intuitive user experience has some calling it the “Apple of fitness.”
The stock price jumped from $20 per share in March to over $40 yesterday. Meanwhile, traditional gyms continue to suffer, and file for Chapter 11 bankruptcy.
The important question is whether Peloton will maintain this momentum once the pandemic ends, or if it’s just another fitness fad. In addition, the company faces increased competition from low-cost alternatives, such as Zwift and Sufferfest, which allow you to connect a regular bike to a trainer forgoing the need to purchase a spin-specific bike.
image credit: Zwift