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Peloton looks to commercial businesses like hotels for new growth


Peloton Interactive Inc. stationary bicycles sit on display at the company’s showroom on Madison Avenue in New York, U.S., on Wednesday, Dec. 18, 2019.

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Peloton is looking beyond the home for its next stage of growth.

Monday’s announcement by the company reveals that it created an online platform where customers from hospitality can purchase both Precor and connected equipment. Peloton hopes to capitalise on the reopening of the economy after leveraging consumer demand.

The move comes after Peloton completed its $420 million acquisition of Precor in April. Peloton gained manufacturing capabilities in the United States through this deal. Precor also acquired a slew ellipticals and cycles as well as strength training equipment commonly found in commercial environments such hospitals, universities, and gyms.

Brad Olson is Peloton’s chief business officer. Peloton bikes are sold in hotels and resorts since years. This is the culmination and one of the major elements of why we purchased Precor. This is the end result and the main reason we bought Precor.

Peloton and its hotel partners will work together to provide exercise classes in guest rooms.

“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,” Olson said.

Peloton doesn’t distinguish between its commercial and individual sales. However, the company acknowledges that its main source of revenue is from individuals who use fitness equipment in their homes.

Peloton indicated earlier in the year that they wanted to increase its membership through commercial partners, as more people left the house due to the pandemic. Peloton launched a corporate wellness program, which gives perks to businesses that partner with the company and choose to outfit their office gyms with Peloton equipment.

Peloton also recently lowered the price of its exercise cycle in a bid to reach new users. According to the company, it will soon launch additional products for fitness.

The move to boost its commercial business comes after the company reported a wider-than-expected loss in its fiscal fourth quarter. The recall of treadmills cost sales. Peloton indicated that while it is making marketing investments, it does not expect profitability to be restored until fiscal 2023.

Peloton shares have fallen 32% in the past year. It has a value of $31 million.