Peloton checks in to hotels and health clubs for future growth
Exercise equipment company going ‘beyond the home’ following Precor acquisition
Peloton is looking “beyond the home” for its next stage of growth, said CNBC’s Lauren Thomas. After buying rival fitness gear-maker Precor for $420m (£308m) in April, Peloton aims to “capitalise on a reopening economy” by expanding into public spaces such as hotels and health clubs.
The New York-based fitness technology firm “won an early celebrity fan base for its exercise bikes and remote workout classes”, the BBC said. And after seeing “demand surge during the pandemic”, Pelaton reported a 172% year-on-year hike in sales.
Describing 2020 as a “transformative year”, the company announced revenues of $607m (£474m) and recorded its first ever quarterly profit, banking $89m (£69.3m).
‘A B2B play’
The deal to acquire Precor has not just given Peloton “manufacturing capacity” in the US, but also Precor’s “slew of treadmills, cycles, ellipticals, rowers and other strength training equipment often found in commercial settings such as health clubs, universities and hotels”, wrote CNBC’s Thomas. This week, Peloton announced the launch of a single platform where hospitality industry customers can buy both its connected fitness equipment and Precor products online.
“This is really a B2B play for us,” said chief business officer Brad Olson. “We’ve been selling Peloton bikes into hotels and resorts for years. But this is really the culmination and one of the big elements of the deal rationale of why we purchased Precor.
“We know that [having] our bikes in hotels and resorts around the world presents a great opportunity for lead-generation awareness of the Peloton product and content.”
It’s been a “dizzying year” for Peloton, said Front Office Sport’s Owen Poindexter. The company has faced a number of lawsuits and investigations related to a voluntary recall of its treadmill in May following reports of at least 70 injuries and one death. However, it “continues to rapidly expand”.
Peloton recently announced the launch of its own apparel line, and in July entered the gaming business with an in-app video game called Lanebreak. The game, which will only be available for Peloton bike owners and subscribers, involves “riders changing their cadence and resistance to meet various goals and control an on-screen rolling wheel”, The Verge said.