The Winter Wellness series continues here at Dandelion Chandelier. The start of a new year always seems to involve health-related resolutions: earnest vows to get and stay in shape, to eat healthier, to take time to improve our mental well-being – and also to get more sleep. It all seems within reach in early January, but some of us have already thrown in the towel by mid-month (that would be right about now). To try to avoid a repeat of that annual cycle, we’ll be investigating the latest research on wellness and weight loss; visiting a cool new fitness studio; checking into a couple of great destination spas; and investigating wellness-focused resources of all kinds.
Today we’re sharing some recent news from the world of spinning. Peloton, the luxury fitness brand known for its $2,000 tech-enabled home stationary bikes — and spin classes that are live-streamed and available on-demand — last week at the Consumer Electronics Show announced a significant new expansion in its strategy. It’s not just about cycling anymore. The new Peloton Tread – basically a treadmill on steroids – will be available starting this fall. The company is taking pre-orders now, with a deposit of $250, and has launched a promotional video on YouTube. Prices for subscriptions to the streamed and on-demand workouts will start at $149 per month. No word yet on the price of the Tread itself.
Peloton describes the new Tread offering as “live total body fitness,” featuring a “mix of live cardio and strength workouts to fit your goals, and training by top NYC instructors that fits your schedule.”
Like a full-service fitness studio, there will be multiple types of classes offered via live streaming, so that members can choose from “a range of class lengths and types, both on and off the Tread, including total body, floor, running and walking.” The company’s announcement materials say that there will be at least 10 live classes per day.
Two female leaders are showcased in the launch materials: Peloton instructors Robin Arzon and Rebecca Kennedy are taking the lead on classes and class development.
In terms of the technology, the company promises an immersive experience from the Tread – it has a 32” HD screen, and a “sound bar” to ensure that participants feel as close to in-studio as possible. The Tread has a “shock-absorbing rubber slat belt and ball bearing system” – the implication being that it’s engineered to ensure a low-impact workout that minimizes injuries.
This spring Peloton raised $325 million in Series E funding led by Wellington Management, Fidelity Investments, Kleiner Perkins, and True Ventures. The valuation in this round was $1.25 billion, officially making the company a “unicorn” (a tech startup with $1 billion or more in theoretical market value). This expansion strategy was clearly one driver of that sky-high valuation.
What are we to make of all of this? Is spinning not enough to make a living on? Is the community being built around the Peloton brand so vibrant that its members are asking for more? The company already offers a handful of yoga classes. Is the new treadmill a way of getting more men and kids into the franchise? The marketing materials stress the attractiveness of the Tread for the entire family – not just mom. Or perhaps the business model is just so good that it demands expansion – once the equipment is in your home, you’re providing a predictable and steady source of income with the monthly subscription payments. Switching costs are reasonably high, as is the inertia around cancelling your contract. Sounds lucrative to us!
It’s hard to pinpoint the exact motivation from the outside, although press reports describe Peloton’s ambition to be “the Apple of fitness.” (we think that perhaps Apple intends to be the Apple of fitness, but that’s another post). Time will tell. As SoulCycle increasingly becomes a lifestyle company and diversifies into wellness and spirituality as well as physical fitness, perhaps Peloton feels some urgency to morph into a full-service fitness brand while there’s still time. The company already has two physical studios – one in Manhattan and the other in Chicago – where spin classes are held and streamed live. Are additional studios on the way? Thirty Westin hotels now have Peloton bikes, as do some large gyms, and reports are that the brand will significantly expand its flagship Manhattan studio. What’s the next phase of growth for the brand? Watch this space for further updates.
In the meantime, have a look at the new Tread. If you already love your Peloton bike, perhaps you’ll love its new sibling, too.
