Peloton pins future on ‘a big move beyond the bike

 

Peloton pins future on ‘a big move beyond the bike’

Peloton

The iPhone of indoor cycling is moving into the running boom’s slipstream. Yesterday, Peloton unveiled a new line of treadmills with jogging-focused AI features that it hopes will revive its shrinking customer base.

Citing the rising popularity of marathons and run clubs, the company is launching:

• The $2,195 Tread Flex, a foldable and relatively quiet treadmill angled toward cramped city dwellers.
• The $3,495 Tread Vision and $6,695 Tread+ Vision, which use movement-tracking cameras and Peloton’s AI coaching system to provide form feedback. The Tread+ also has a resistance-training mode likely meant for the CrossFit and Hyrox crowds.

The new products, releasing Oct. 1, mark “a big move beyond the bike, which is the foundation of everything here, but we are going all in on Tread,” CEO Peter Stern said.

Peloton is also going all-in on partnerships, including with Miley Cyrus, Spotify, and the New York City Marathon, which users will be able to partially “re-run” using a new treadmill feature. Meanwhile, Peloton is trying to infiltrate more gyms and hotels.

Zoom out: Peloton’s market cap has collapsed 97% from a pandemic-fueled peak of ~$50 billion in 2021. The company recently returned to profitability, but revenue growth remains measly, as it lost ~500,000 paid subscribers in the last three years.