Built the Netflix for spin class—brought boutique fitness home for time-starved achievers. Became a status symbol for hard-charging professionals. Hit 1.1M subscribers by summer 2020 with revenue doubling during pandemic.
COVID demand surge fooled leadership into thinking niche was mass market. Dumped $820M into factory and acquisitions just as demand collapsed post-pandemic. Product recalls killed safety perception, marketing missteps (Peloton Wife, Sex and the City death scene) destroyed cool factor. Competitors flooded in while Peloton let them use its platform for $12.99/month.
New CEO cleaning up the mess. First cash-flow positive quarter recently, but stock still down 97%. Revenue shrunk from $4B to $2.8B. Still has loyal fans—question is whether niche is enough.
