M08 Recap

During our first meeting of Winter term, we discussed Peloton and exercise programs like Soulcycle and Barry's Bootcamp.

We talk about how:

• Peloton produces high-end stationary bikes with a huge built-in screen. These bikes sell for $2000 and with a monthly subscription of $39 to access exercise videos. 

• Each of Peloton's customers is valued at $15,631. That's a whopping 2286% more than the subscriber values of all companies such as Match, Netflix, Facebook, and Spotify. Meanwhile, Peloton's value as a company is 8.8 billion, lower than all those companies.

• Peloton also claims it's a "tech"company, a fancy label employed by many companies. We do not believe Peloton is a real tech company, since it cannot collect the degree of data companies like Facebook and Google can collect. Furthermore, similar to Uber's issue, Peloton's business relies on a buyer and manufacturer relationship which can drive up developmental costs. 

• Fitness programs like Barry's Bootcamp and Soulcycle open in high-density urban populations. Thus, Peloton may find less success in highly urban settings due to competition from these fitness programs.