They sell these treadmills and bikes with video training and scenery on it. I have no idea who is buying their products though.
I bet this is just another pump and dump startup.
I bet this is just another pump and dump startup.
This is actually a huge market: Biking outside is dangerous/exposed/has real terrain that may not be amenable for your current intervals etc. It works when you do it for commute/weekend rides, but if you want anything like a training plan, you need an indoor trainer.
Biking also is a rich (wo)man's sport nowadays: There are bikes you can get for $10-15k and many folks (like software engineers) don't bat an eye. Anecdotally, I personally have 5-6 bikes (one is in parts...) and add about 10k miles a year, and I am not even a racer at the lowest categorized level.
NOTE: I don't own a peloton, I have a wahoo kickr. Similar trainer without the social aspects because I didn't care for that.
As more and more people start becoming fitness conscious / want an active hobby - they are going to want a weekday option to keep up the fitness. This is it.
Other companies to look at are Wahoo / Strava / Zwift / Trainer Road / Training Peaks / Flywheel / Soul cycle / sufferlandria and a ton more I am probably missing.
The initial amount is steep - but I wouldn't be surprised if lease plans show up very soon.
'Stationary bikes' are already a niche market to begin with, then add on the crazy price and monthly?
Crazy.
The problem with regular financing is that these things have little to no residual value, i.e. difficult resale. You can put a price on a used car so it can be kind of de-facto collateral. Not Pelotons.
Don't any of you remember 'Bowflex'?
$50 or Best Offer. Every time I visit an estate sale.
[1] https://www.entrepreneur.com/article/306545 Jan 2018: 200k bikes sold
[2] https://www.geekwire.com/2017/qa-pelotons-president-1b-bike-... June 2017: 113k bikes sold
Having said that: Zwift + decent road/TT bike + power pedal/feedback trainer is more cost-effective in the long run and you get to actually take your bike outside on rides (gasp) to boot. Not sure why people like to watch some instructor sweat - give me nice scenery with other actual riders any day.
Zwift also happens to work for running with a treadmill and supported foot pod, but I haven't tried this yet. It's easier to run outside in the winter than to cycle outside in the winter!
"Wahoo / Strava / Zwift / Trainer Road / Training Peaks" cater to competitive cyclists which is niche group (huge downtrend in bike racing; look at #s from long running races as evidence).
Peloton is more geared towards "fitness" and otherwise would be gym and spin class goers; this is a much bigger market.