If, like this writer and his friends, you forked out for an indoor fitness bike during the Covid lockdowns of 2020 and 2021, you likely came to love (and sweatily curse) the name Peloton. The New York City-based bike manufacturer did big business during lockdown, with revenue jumping to $607m by September 2020, a 172 percent increase on pre-pandemic figures.
But, just like that total collapse of will before that final big hill, once gyms reopened the inevitable happened and for Peloton, the wheels almost came off. According to Sky News, the company saw its value drop from $50bn in 2021 to less than $8bn as gyms reopened in 2022.
All is not yet lost, however, as rumours that Nike, Apple and Apple are interested in buying the company saw its share prices rally by 26 percent, adding $2bn to the company’s value.
While the ‘Big Three’ aren’t believed to have approached Peloton officially, it seems more than likely that a bail-out will be announced sooner rather than later. With that in mind, we thought it was the ideal time to take a look back at the company’s highs and lows to date, from copyright infringements to IPOS to high profile deaths.
An early Peloton prototype
High: The company is founded
It’s 2011 and Barnes & Noble exec John Foley has had an idea. He takes his colleague, Tom Cortese aside and pitches the idea for a new piece of tech that will make it possible for the time-poor (did we mention this is New York?) to get a studio-level workout in without leaving their homes. Peloton Interactive, LLC is founded the next year, raising close to $4 million in seed money by December 2012. Its first bike sells on Kickstarter in 2013, priced $1,500.
Low: Peloton is sued for copyright infringement
Things are going well for Peloton and in 2018 it announces plans to expand into the UK and Cananda – presumably because Foley and Cortese think Brits and Canadians need to lose weight. Either way, the high isn’t to last as the National Music Publishers Association sues Peloton in 2019, asking for $150 million in damages for using music without proper permission. Later that year, the NMPA ups its ask to £300 million. Peloton settles, keeping the figure a secret.
Things are going well for Peloton and in 2018 it announces plans to expand into the UK and Cananda – presumably because Foley and Cortese think Brits and Canadians need to lose weight. Either way, the high isn’t to last as the National Music Publishers Association sues Peloton in 2019, asking for $150 million in damages for using music without proper permission. Later that year, the NMPA ups its ask to £300 million. Peloton settles, keeping the figure a secret.
High: Peloton goes public
… and makes a shed-load of cash. $1.16 billion, to be exact
Low: A controversial ad campaign
Peloton’s 2019 holiday advert features a wife who receives a Peloton bike for Christmas and through her subsequent weightloss comes to realise her life has improved for the better. Some viewers weren’t happy, complaining that the advert gave the impression that the woman’s husband (the gift-giver) was unhappy with her physical appearance. Peloton defended the advert, arguing it was meant to portray how its users were often “meaningfully and positively impacted after purchasing or being gifted a Peloton Bike or Tread, often in ways that surprise them.” Nevertheless, Peloton share prices suffered.
High: Peloton wins a lawsuit
The fallout from “Project Magnum” was huge, with Peloton competitor Flywheel Sports admitting in 2020 that it had created the moniker as part of a covert operation to obtain Peloton’s confidential trade information. Naturally, Peloton sued the heck out of Flywheel, which filed for bankruptcy in September 2020, at which point Peloton offered Flywheel users the opportunity unity to exchange their Flyhweel bikes for refurbished Peloton bikes at no cost. A huge PR win.
Low: A child dies underneath the Peloton’s Tread+ model
In early 2021 a tragedy occurred when a child died after being pulled under a Peloton Tread+ treadmill while its parent was using the device. Similar stories of almost 40 children suffering injuries including broken bones and pets dying surfaced, causing the U.S. Consumer Product Safety Commission warned people with children and pets to immediately stop using the Tread+ model. In one instance, a three-year-old child reportedly suffered third-degree burns after being pulled under the treadmill.
Peloton initially rejected calls to recall the product and instead suggested users keep children away from the treadmill. The company eventually backtracked and recalled the Tread and Tread+ models on May 5th 2021.
Low (?): Peloton kills Mr Big
The long-awaited Sex and the City reboot And Just Like That… aired in December 2021 and showed the character Mr Big collapsing and dying after working out on a Peloton bike. The scene caused Peloton shares to fall 11.3 percent.
“We get why these fictional TV shows would want to include a brand that people love to talk about, but Showtime’s use of Peloton’s Bike+ and reference to a Peloton Instructor was not a brand, product, or instructor placement, and we did not agree for our brand and IP to be used on this show or provide any equipment,” a Peloton representative told Sky News.
In a bid to undo the damage, Peloton hired Mr big actor Christ North to star in a series of adverts. However, North was later accused of sexual assault by two women, and the plan backfired. Weeks later, Billions also featured a character suffering a heart attack after riding on a Peloton device.
Low: Foley is ousted
With all of these mishaps along the way, it’s perhaps no surprise that many stockholders didn’t have the most confidence in how Foley was running the company. Holding a nearly 5 percent stake in the company, Blackwells Capital sent a 65-page presentation to the board in January arguing Foley had “grossly mismanaged” the company. Foley is now out, replaced by Former Spotify CFO Barry McCarthy.
High: Tech’s big three step in to keep the wheels turning
“We don’t comment on rumours and speculation,” an Amazon spokesperson told the BBC when asked about the rumoured Peloton take-over. To which, BBC reporters (possibly) replied “On yer bike.”
According to the BBC, Analysts at Wedbush Securities have suggested other bidders could be interested, including Disney. “We would be shocked if Apple is not aggressively involved in this potential deal process,” a representative said. Mickey Mouse leading classes, anyone? With investor interest hotting up, it seems we’ll find out sooner rather than later.
Read next: Five lessons to learn from the career of John Foley
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