Peloton (company)

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Peloton Interactive, Inc.
IndustryExercise equipment
FoundedFebruary 2012; 7 years ago (2012-02)
FoundersGraham Stanton
Hisao Kushi
John Foley
Tom Cortese
Yony Feng
HeadquartersNew York City, New York, U.S.
Number of locations
37 (Retail)
2 (Studios)
Key people
John Foley (CEO)
William J. Lynch Jr. (President)
ProductsStationary bicycles and treadmills
ServicesFitness classes and subscriptions
Number of employees
400 (2017)

Peloton is an American exercise equipment and media company that was founded in 2012. The company is based in New York City, New York. Its main product is a luxury stationary bicycle that allows users to stream spinning classes in the company's fitness studio through a monthly subscription service.[1]


Peloton was founded by Graham Stanton, Hisao Kushi, John Foley, Tom Cortese, and Yony Feng in 2012.[2]

In January 2017, William J. Lynch Jr. joined Peloton as company president.

In May 2018, Peloton announced plans to expand into Canada and the United Kingdom in fall 2018.[3]

In June 2018, Peloton acquired Neurotic Media, a music distributor.[4]

In March 2019, Peloton was sued by the National Music Publishers Association for using copyrighted music in their videos without proper synchronization licenses, seeking $150 million in damages.[5] The action resulted in changes to music used in its sessions, as well as removal of certain programs that used the songs specifically-named in the suit. Users criticized these changes as affecting the quality of its product.[6] In September 2019, the suit was amended and increased to $300 million.[7]



Peloton's stationary bicycle was released in 2014 at a price of $2,245. It includes a 22" touchscreen on which the user may view classes on a custom version of Android.[8] The bicycle requires cleats, which lock onto the pedals.[9]

Classes are recorded daily and streamed live from Peloton's cycling studio in Chelsea, Manhattan and then uploaded to their library for on-demand access 24/7.[10] The studio is open to the public with daily walk-in style classes that don't require payment.

A version of the bicycle designed for commercial environments was unveiled in January 2017.[11]


The Peloton Tread is $4,295 & was unveiled by the company at CES in January 2018 with initial shipments slated for the fall of 2018.[12] Classes are accessible via a 32 inch touchscreen & sound bar mounted at the front of the machine.[13] Peloton is reportedly developing a new treadmill that will cost less than the current model. It is expected to be available in 2020. [14]

Rowing machine[edit]

Peloton is reportedly developing a new rowing machine, expected to be available in 2020. [15]

Digital (App)[edit]

Peloton Digital is a monthly subscription service that allows users to stream the company's classes on iOS devices [16] on cycling, running (both treadmill and outdoor), yoga, and meditation.


Before launching its stationary bicycle and fitness platform, Peloton raised $3.9 million in 2012 for product development.[17]

In April 2014, Peloton raised a $10.5 million series B round of funding.[18]

In April 2015, Peloton raised a $30 million series C round of funding.[19]

In December 2015, Peloton raised a $75 million series D round of funding.[20]

In May 2017, Peloton raised a $325 million series E round of funding, valuing the company at $1.25 billion.[21]

In August 2018, Peloton raised a $550 million series F round of funding, valuing the company at $4 billion.[22]

In February 2019, Bloomberg reported Peloton had chosen Goldman Sachs and JPMorgan Chase to lead its initial public offering, valuing the company at more than $8 billion.[23]

Peloton Interactive confidentially filed with the Securities and Exchange Commission for a proposed IPO on June 5, 2019.[24] The company has not yet decided on the number or price range of shares it plans to sell.[25]

On September 26, 2019, Peloton raised $1.16 billion via its IPO, floating 40 million shares of class A common stock at $29 per share. At the market close, Peloton's share price had dropped to $25.76 reflecting an 11.2% drop on its first day of trading.[26]


Peloton launched a major advertising campaign, "Better Is in Us", during the 2018 Winter Olympics, which aimed to focus on personal stories of its users and how it had affected their lives. The company bought advertising inventory from NBC to air the ads during its coverage of the Games. Peloton also streamed four classes from NBC's Olympics studio in Pyeongchang, South Korea, with instructor Robin Arzon joined by NBC personalities such as Paul Burmeister and Natalie Morales.[27][28][29]

In November 2019, the company released a new commercial, "The Gift That Gives Back", where a wife receives a Peloton bike for Christmas from her husband, and begins recording a video diary of herself using the bike. A year later, she proclaims that she "didn't realize how much this would change me." In late-November, the commercial began to receive criticism from viewers, who argued that its plot implicated that the women's husband was unsatisfied with her physical appearance (even though the actress seen in the commercial was already noticeably fit). Critics denounced the commercial as being "dystopian", a "male fantasy", and akin to "the first minute of an episode of Black Mirror".[30] Peloton defended the criticism, arguing that it was intended to celebrate a "fitness and wellness journey", inspired by 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." Criticism over the campaign has had an impact on Peloton's share price.[31][30]

See also[edit]


  1. ^ LaVito, Angelica (23 May 2018). "Peloton CEO John Foley says fitness company is 'weirdly profitable'". CNBC. Retrieved 3 August 2018.
  2. ^ Mitra, Sramana (12 July 2017). "Billion Dollar Unicorn Peloton - Cycles Into The Club". Yahoo News. Retrieved 4 August 2018 – via LinkedIn.
  3. ^ Shankar, Bradly (10 May 2018). "Peloton's connected spin bike is coming to Canada this fall". MobileSyrup. Retrieved 4 August 2018.
  4. ^ Fernandez, Marisa (27 June 2018). "Peloton acquires music distributor Neurotic Media". Axios. Retrieved 3 August 2018.
  5. ^ Deahl, Dani (2019-03-19). "Peloton is being sued for using music without permission in its video fitness classes". The Verge. Retrieved 2019-03-20.
  6. ^ Garun, Natt (2019-04-24). "Peloton owners are pissed about bad music after copyright lawsuit". The Verge. Retrieved 2019-04-25.
  7. ^ "Music Publishers: Peloton 'Let Down Its Customers By Failing to Pay Creators'". Variety. 2019-09-13. Retrieved 2019-09-16.
  8. ^ Eadicicco, Lisa (31 May 2018). "Working Out Is Hard. Streaming Just Might Make It Easier". TIME. Retrieved 4 August 2018.
  9. ^ Goode, Lauren (25 April 2018). "My two-month ride with Peloton, the cultish, internet-connected fitness bike". The Verge. Vox Media. Retrieved 4 August 2018.
  10. ^ Frieswick, Kris (May 2016). "This Startup Will Keep You From Ever Going to the Gym Again". Inc. Retrieved 4 August 2018.
  11. ^ Takahashi, Dean (4 January 2018). "Peloton launches immersive fitness bike for commercial gyms". VentureBeat. Retrieved 3 August 2018.
  12. ^ Hanbury, Mary (27 February 2018). "We tried the new $4,000 treadmill from the billion-dollar startup that could be 'the Apple of fitness' — here's the verdict". Business Insider. Retrieved 3 August 2018.
  13. ^ Schomer, Stephanie (9 January 2018). "Peloton Just Unveiled a $4,000 Treadmill -- and Everything Is Riding on It". New Haven Register. Retrieved 4 August 2018.
  14. ^ "Peloton to Sell Cheaper Treadmill and Rowing Machine in 2020". Retrieved 2019-11-15.
  15. ^ "Peloton to Sell Cheaper Treadmill and Rowing Machine in 2020". Retrieved 2019-11-15.
  16. ^ Moscaritolo, Angela (20 June 2018). "Get Your Sweat On With Peloton App (No Pricey Machine Required)". PC Magazine. Retrieved 4 August 2018.
  17. ^ "Peloton". AngelList. Retrieved 4 August 2018.
  18. ^ Dorbian, Iris (24 April 2014). "Tiger Global leads Series B round for Peloton". The PE Hub Network. Retrieved 4 August 2018.
  19. ^ Buhr, Sarah (16 April 2015). "Stationary Bike Startup Peloton Expands Production And Distribution With $30M In New Funding". TechCrunch. Oath Inc. Retrieved 4 August 2018.
  20. ^ Porter, Kiel (1 December 2015). "Peloton Raises $75 Million From Serial Fitness Backer Catterton". Bloomberg News. Retrieved 4 August 2018.
  21. ^ Rao, Leena (24 May 2017). "This Tech Cycling Company Is Now Worth $1 Billion". Fortune. Retrieved 3 August 2018.
  22. ^ Sawers, Paul (2 August 2018). "Peloton snags $550 million in new financing, valued at $4 billion ahead of expected IPO". Fast Company. Retrieved 3 August 2018.
  23. ^ Zaleski, Olivia (25 February 2019). "Peloton Picks Goldman Sachs, JPMorgan to Lead IPO". The New York Times. Retrieved 21 April 2019.
  24. ^ Angelica LaVito and Lauren Hirsch "Fitness company Peloton says it has filed for an IPO", CNBC, June 5, 2019
  25. ^ Colin Kellaher, "Exercise-Bike Maker Peloton Files Confidentially for IPO", The Wall Street Journal, June 5, 2019
  26. ^ Henderson, Richard (26 September 2019). "Peloton skids on stock market debut". Financial Times. Retrieved 3 October 2019.
  27. ^ Steinberg, Brian (2018-02-06). "NBCU, Peloton Will Stream Spin Classes from PyeongChang in Olympics Marketing Deal". Variety. Retrieved 2019-09-16.
  28. ^ "Peloton Pedals Into the (Winter) Olympics With New Campaign". Ad Age. 2018-02-07. Retrieved 2019-09-16.
  29. ^ Gay, Jason. "Queasy Rider! A Pedal Through NBC's Olympic Spin Zone". WSJ. Retrieved 2019-09-16.
  30. ^ a b Belam, Martin; Partridge, Joanna (2019-12-04). "Peloton loses $1.5bn in value over 'dystopian, sexist' exercise bike ad". The Guardian. ISSN 0261-3077. Retrieved 2019-12-04.
  31. ^ "Peloton 'male fantasy ad' could dent brand image". Ad Age. 2019-12-03. Retrieved 2019-12-04.