You've got to pack your bag. You've got to travel. The showers might be dirty or
taken. Fitness classes. We've all got a love-hate relationship with them.
But Peloton is working to change that and it's created a movement.
Peloton started when the founders wanted to solve that common excuse we all use:
"I don't have time for the gym"
We were gonna shift this fitness industry from these
commercial gym environments into the most convenient place on earth.
John Foley first came up with the idea for Peloton as a busy dad living in New York.
He and his wife couldn't find time to fit the SoulCycle and flywheel classes
they loved into their schedules. Could you build the platform that allow you to
do that at home? Your convenience. Your time. Your schedule. It turns out they could.
Investors actually thought we were crazy. Who builds their own bike? Why are
you building your own tablet computer? You're gonna start your own broadcast
studio and hire your own instructors? They saw incredibly expensive business
models but the founders say that business model has been key to their
success. The company has over a million passionate riders.
Celebrities.
Athletes.
Business leaders.
Everyone started clipping into their bikes and tuning into the classes.
There are fan groups and podcast.
And rider are self-proclaimed members of a cult. We've seen users send us the Peloton logo
permanently tattooed on their body. People are pretty obsessed with Peloton, I
myself included. A lot of that obsession is thanks to the elite instructors, like
Arzon, on who'd become global fitness celebrities. The Peloton instructors are
like a team of superheroes. I really liken it to creating a team of like
Avengers and we all come with our own special skill set. You're part DJ your part
coach your part television host and instructors are kind of breaking that
fourth wall and in people's homes that's really powerful stuff. Peloton has such a
personal connection for me, specifically Robin. When she is talking to that screen she is talking to me.
Before I had my Peloton, I worked out about three or four times a week in a private gym with a trainer.
And it was getting harder and harder to schedule with her. That comes
out for me to about $120 a month. Which is really inexpensive compared to a private trainer for various sessions.
Peloton has been criticized for high prices and
their elite marketing. A recent viral meme mocks Peloton ad calling the
company out for being bougie and unachievable. We strive to find different
entry points. The peloton bike on one of our financing plans is closer to $50 a
month. Peloton growth is impressive. Investors have poured in nearly a
billion dollars, valuing the company at $4.15 billion. The company says it'll
reach $700 million in revenue in February 2019. And there's a potential Peloton IPO
rumored for later this year. The industry has taken note. We have updates on
Peloton competitors. Oh, sorry. "competitors."
Competitors have already jumped on the trend.
Other at-home Fitness brands like "Mirror" and "Tonal" have sprung up. And
rival Flywheel launched a subscription service to stream cycling classes.
Prompting a 2018 lawsuit for Peloton that claims the company copied its
proprietary design, which flywheel denies. Peloton is increasing its number and
types of fitness classes and expanding its reach. We've launched the UK and
Canada. So now you can be riding a leaderboard with people from the Isle of
Man to Vancouver, Canada to Bozeman, Montana. And we think that can
potentially unify people through fitness. Since the beginning the founders had a
vision. If they could control every aspect of the business from designing
and building the bike to developing the software, training instructors, streaming
music to delivering the experience to customers
homes, that vertical integration could lead to the company's of lasting success.
And Peloton has no intention of slowing down. Dreamers who hustle are an
unstoppable combination and that's literally the DNA of this company.