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PRODUCT NEWS
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| Peloton relaunches its corporate offering as Peloton for Business – reveals year end financials |
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| 18 Aug 2023 . BY Liz Terry |
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| Peloton's commercial bikes are already being used across thousands of Hilton Hotels / Peloton |
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Peloton, which announced a major rebrand in May is also relaunching into the B2B market as Peloton for Business, which it says will offer "a unified portfolio of B2B wellbeing solutions for enterprise clients".
The company had previously launched Peloton Commercial – a merger of Peloton and Precor's product lines – in September 2021 following its acquisition of Precor in April that year, however, the two have since de-merged to trade separately, to the extent that Precor has since done a distribution deal with Stages Cycles .
Peloton for Business will operate across seven vertical markets – hospitality, corporate wellness, multi-family residential, education, healthcare, gyms and community wellness.
The operation will have a limited offering, mainly based around the Peloton Bike, that include access to the Peloton App, preferred pricing on Peloton equipment and "corporate engagement experiences". The company says it will also offer "access to enterprise-level partnerships that deliver exclusive programming and offers for the audiences of partner brands and organisations".
No mention has been made of Peloton's other products, the Tread and Row.
Peloton has appointed Greg Hybl as senior VP and GM of Peloton for Business, saying the aim is to "streamlines and strengthens Peloton's existing B2B services,"
"In the last 12 months alone, there have been more than 7.5 million rides taken on Peloton Bikes in commercial settings globally," said Hybl "Additionally more than 93 per cent of clients on Peloton's Corporate Wellness Programme have renewed their contracts.
"Our goal is to be a solution-oriented partner that provides customisable options for each client's unique needs, regardless of a company's size," he said. "By offering both holistic and individualised solutions, we can now widen our client base to include small- and mid-sized organisations, in addition to the larger enterprise businesses we currently serve."
Current clients include Sequoia, YMCA, Volvo, Dropbox and Hilton Hotels which has done a deal with Peloton to feature its bikes across many of its hotels.
"Hilton's successful industry-first partnership with Peloton has helped us deliver a meaningful wellness offering at scale to our guests," said Amanda Al-Masri, VP of Global Wellness at Hilton. "With 5,800 Peloton Bikes across the entire Hilton portfolio in the US, UK, Germany, and most properties in Canada, guests are now able to take their Peloton routines with them while traveling. We know wellness is a top priority for travellers around the world and we have delighted so many guests with this partnership."
Connections between Peloton and Hilton are strong – Ryan Crabbe, who was responsible for Hilton's in-room Five Feet to Fitness concept – has been senior director, commercial experience and partnerships at Peloton Interactive since 2018.
HCM's sister magazine, Spa Business, has recently profiled Hilton's Amanda Al-Masri and her team.
Read the interviews online, on digital turning pages or on PDF here and sign up for a digital subscription to Spa Business here.
BREAKING NEWS
Peloton has revealed larger than expected losses, due to a quarterly drop in subscribers of 29,000 people – 20,000 of which it attributed to a recall of its Bike seat post, which saw people cancelling while they waited for their new seat to be delivered.
Seats were recalled for safety reasons, with the recall costing the company around US$40m.
Peloton beat sales expectations with revenues of US$642.1m against an expected US$639.9m. Sales in the same period last year were US$678.7m
This all led to a net loss of US$241.8m for the three-months ending June, compared to a loss of US$1.26bn a year earlier, showing Peloton is making positive progress in its bid to return to profit.
Share dropped 20 per cent on the news, in spite of this.
CEO Barry McCarthy had warned the fourth quarter of Peloton's financial year would be among its most challenging from a growth perspective.
Peloton ended the quarter with 3.08m subscribers – up 4 per cent year-on-year and in line with expectations and 29,000 lower than last quarter, a difference which was attributed to seasonality. “Peloton’s FYQ4 performance is a reminder we operate a seasonal business,” McCarthy told shareholders.
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