But the founder of Peloton, John Foley, says Peloton sells happiness. The company state they are more than just bikes and refers to itself as a technology, media, software, product, experience, fitness, design, retail, apparel, logistics company. From the get go, Peloton was all about selling the bike then deploying the razor blade model of monthly subscriptions.
As shelter in place mandates have either bankrupted gyms or forced temporary closures such as the case with Planet Fitness, Peloton has flourished. Peloton’s revenue increased 66% last quarter as more people purchased its fitness equipment and tuned into its live classes. And if you can’t afford the bike, now sweat, Peloton offers non-bike classes as well. As a result, Peloton raised its 2020 outlook for paid subscription to 1 million from 925k.