Peloton is a hands-on fitness business that manufactures spin bikes and treadmills. It recently brought Beyonce on board, which is a significant moment for the company. Peloton stated that it has a multiyear contract with the iconic figure that entailed a curated sequence of themed exercises throughout all categories. The aspects covered on the Peloton mobile app is yoga, cycling, boot camp, meditation, running, and strength.
Details of the financial aspect remained undisclosed during the time of this announcement. Beyonce stated that the mission of Peloton was in line with her beliefs. The two parties agreed that music could uplift, inspire, and encourage people who were on a quest to stay fit. For numerous years, Beyonce has been a member of Peloton. She remains excited about her partnership with a business that assists people in becoming their best version in an adaptable and creative way.
Beyonce is among the most famous artists in the Peloton community, which has over 3.6 million members. This factor alone made this alliance feel like a natural choice. Beyonce and Peloton stated that there would be a digital membership provision for two years. The offering would be availed to ten scholars at historically black universities and colleges.
It would dedicate to developing lasting hiring alliances with the schools to introduce new talent. The managing director of Wedbush Securities Analysts, James Hardiman, stated that in the past, the company failed to carry Beyonce’s music. As such, this would add to Peloton’s competitive edge. Another plus for the fitness company is the extent of their music index.
Anticipated Win for Peloton
Undoubtedly, whatever Beyonce proposes to achieve is a success, and this recent venture will deliver similar results. Peloton shares went up by 8% following the announcement of this alliance. A tweet from a Peloton user stated that the market capitalization of the company increased by $2.5 billion following the contract with Beyonce.
The fitness firm endorsed the sessions in push notification and emailed it to its following on the Peloton app. Peloton users took Twitter their undeniable excitement over the partnership.
Business Amid Pandemic
Despite COVID-19, the business was on the rise for Peloton. Following the closure of gyms in the lockdown period, the company experienced a sales influx from people seeking other ways to stay fit at home. In a few places, Peloton tried to match the surge in demand and had a ten-week queue for its indoor cycling exercise. Peloton reduced the costs for its most famous spin bike to facilitate its accessibility to users.
At the time, the spin bike went for $350; now, it is set at $1,895. The company also launched a high-end Bike+, which came with additional features, including a sound system with four speakers and a swiveling touchscreen. The premium item retails at $4,295 while its substitute, a cheaper treadmill, goes for $2,495.
The prospects of Peloton are quite promising and seem to point to a significant move away from conventional gyms. The trend is shifting to in-home fitness, and the company remains well-equipped and ready to leverage this opportunity.