- October 13, 2021
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Peloton has created a B2B platform to let hospitality customers buy connected fitness equipment and Precor products online, CNBC reported. The effort sees the exercise company moving beyond the home.
The company has been seeing demand from customers that had to remain indoors because of the pandemic. But now, as the world attempts to reopen, the company wants to attract other types of buyers, according to the report.
“This is really a B2B play for us,” Brad Olson Peloton Chief Business Officer told CNBC. “We’ve been selling Peloton bikes into hotels and resorts for years. … But this is really the culmination and one of the big elements of the deal rationale of why we purchased Precor.”
Peloton bought Precor in April for $420 million, with the deal giving Peloton more manufacturing capacity in the U.S. as well as several treadmills, cycles, ellipticals, rowers and other strength training equipment from Precor, which are usually used in commercial settings like gyms, universities and hotels, the report stated.
Peloton also plans to work with hotels to offer exercise cycles inside the rooms, according to the report. Olson said having the bikes in those kinds of rooms could lead to more awareness of Peloton overall.
Meanwhile, Peloton’s fourth quarter earnings results saw the company’s subscriptions rocketing up by 114%, numbering 2.33 million.
Read more: Peloton Connected Fitness Subscriptions Grow 114%
Other headline numbers included paid digital subscription growth of 176% to over 874,000 and total membership growth to more than 5.9 million.
The company boosted workouts by 75% year over year, reaching 134.3 million and averaging 19.9 monthly workouts per connected fitness subscription. That ended up being a boost from 24.7 in the previous year.
Total Peloton revenue grew by 54% year over year to $937 million.
Peloton has also announced that it will be expanding into the video game industry with a game called “Lanebreak” in which users can change their cadence and meet goals.
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