We’ve all seen the TV ads and read the stories about Peloton. And while some credit the brands demise to THAT episode of the revival of Sex & the City the brand and concept has a lot more problems to deal with. In the release of its latest earnings revenue fell 24% and the entire category of what is being called “connected fitness equipment” fell 42%. Peloton’s loses alone are now $757 million. About a year ago, the company was valued at $50 billion. Today it’s worth around $4 billion. Don’t get me wrong that’s still a lot of money – but Peloton’s premise – as well as other companies in this category is misguided.
Sure during the pandemic when people had to stay at home the concept of connecting with others during a workout through the internet had merit. But for many, that trip to the gym serves two purposes – working out of course – but also meeting up with friends and creating a social event. People want to be with other people – that was before the pandemic and certainly the desire has increased even more since we were all shuttered in for so long. Too often we point to technology as the answer. Let’s remember how Peloton rose to fame – it was those early ads – where an attractive guy and an attractive girl in facing high rise apartments were working out on their bikes but stealing glances through their ceiling high windows at each other across the way.