Peloton (exercise equipment company)

Peloton Interactive, Inc. is an American exercise equipment and media company based in New York City. It was founded in 2012 by John Foley and launched with help from a Kickstarter funding campaign in 2013. 
Peloton's main products include stationary bicycles, costing US$1,895 to US$2,945, and treadmills, costing US$2,495 to US$4,895, that allow monthly subscribers to remotely participate in classes via streaming media. The company's fitness instructors, including Robin Arzon, Ally Love, Alex Toussaint, and Jess King are now celebrities. 
Products.
Peloton bikes are available in the United States, the United Kingdom, Germany, and parts of Canada, with expansion to Australia planned for 2021.
All of Peloton's bikes and treadmills include a touchscreen on which users can stream classes for a monthly US$12.99 fee. Classes are offered in strength training, yoga, cardio aerobic exercise, meditation, running, cycling, stretching, tread bootcamp, bike bootcamp, and walking. Users can video chat with friends during classes. The device touchscreen operates on a custom version of Android and is available on Apple TV, Amazon Fire TV, Roku, and Android TV, which is installed onto smart TVs from Sony, Philips, and Sharp Corporation. Classes can also be streamed via the Peloton mobile app or website and can also be shared from an iOS device using AirPlay or Miracast from Peloton equipment, or can be connected via HDMI cable to a computer, or be connected via Chromecast from an iOS and Android device.
Classes are recorded daily and streamed live from instructors' homes or Peloton's cycling studios in Hudson Yards, Manhattan and London and are then uploaded to the Peloton library for on-demand access 24/7. 
The Gen 3 monitor is 21.5 inches in size, and is an HD touchscreen. The monitor used on the Bike+ is an HD touchscreen that is 23.8 inches. When the monitor was upgraded, Peloton required users to purchase monitor upgrades to continue using its software.
Bike shoes with cleats are required for use so that users can lock into the pedals.
History.
In 2011, John Foley, an executive at Barnes & Noble in New York City, pitched his colleague, Tom Cortese, on the idea that technology could make it possible for people with little time to get the full experience of working out in a high-end studio cycling class in their homes.
Peloton Interactive, LLC was founded by Graham Stanton, Hisao Kushi, John Foley, Tom Cortese, and Yony Feng in January 2012. The company raised $400,000 in seed money in February 2012 and another $3.5 million in December 2012. Peloton's first stationary bicycle was released in 2014.
Peloton raised a $10.5 million series B round of funding, followed by $30 million in round C and $75 million in round D.
In May 2017, Peloton raised a $325 million series E round of funding, valuing the company at $1.25 billion.
In January 2017, William J. Lynch Jr., former CEO of Barnes & Noble, joined Peloton as company President.
A version of the bicycle designed for commercial environments was unveiled in January 2017.
Tread+ was unveiled in January 2018 by the company at the annual Consumer Electronics Show in Las Vegas. Classes are streamed via a 32″ touchscreen and sound bar mounted at the front of the machine. 
In May 2018, Peloton announced plans to expand into Canada and the United Kingdom in fall 2018. It also announced construction of a flagship studio at Manhattan West in New York City.
In June 2018, Peloton acquired Neurotic Media, a music distributor.
In August 2018, Peloton raised a $550 million series F round of funding, valuing the company at $4 billion.
In March 2019, Peloton was sued by the National Music Publishers Association for using copyrighted music in their videos without proper synchronization licenses, seeking $150 million in damages. The action resulted in changes to music used in its sessions, as well as removal of certain programs that used the songs that were specifically named in the suit. Users criticized these changes as affecting the quality of its product experience. In September 2019, the suit was amended and increased to $300 million. Peloton settled the lawsuit; terms were not disclosed.
On September 26, 2019, Peloton became a public company via an initial public offering, raising $1.16 billion.
In October 2019, Peloton acquired Tonic Fitness Technology, a Taiwanese manufacturing company for $47.4 million.
In February 2020, Flywheel ceased services after it had settled with Peloton over a patent lawsuit. Peloton offered exchanges for Flywheel Home bikes.
In April 2020, Peloton announced a new record of simultaneous users in a workout class. With the approximately 2 million worldwide members, the record amount was 23,000 people.
Sales increased significantly during the COVID-19 pandemic as home gyms became more popular during the COVID-19 lockdowns. However, the rapid increase in demand caused shipping delays, with customers receiving their products months late, leading some to cancel orders.
In September 2020, Peloton released a high-end new version of the stationary bike, dubbed Bike+, and a lower-end treadmill, Tread.
In December 2020, the company made a $100 million investment in shipping solutions in an attempt to accelerate manufacturing and decrease shipping times.
On March 8, 2021, Peloton announced its expansion to Australia where it plans to sell the Bike and Bike+ in the second half of 2021.
In March 2021, the company warned people to keep their kids off its treadmills after a child died in an accident.
In April 2021, the company acquired Precor USA, a manufacturer of home and commercial-grade workout machines, for $420 million from Amer Sports.
Tread and Tread+ safety recall.
In May 2021, the U.S. Consumer Product Safety Commission warned people with children and pets to immediately stop using the Tread+ model of Peloton treadmill after one child died and almost 40 others were injured including fractured bones. The incident in question occurred when a child was pulled under the treadmill while a parent was running on it. The commission posted a video showing a child being pulled under the treadmill. According to the CPSC, 23 of the incidents registered with Peloton products involved children and at least one involved death or injury to a pet. The commission stated that if the product was to be used, it should be stored in a locked room to prevent children and pets from accessing it. 
Peloton initially rejected the Consumer Product Safety Commission's request to recall the product and instead warned parents to keep children away from the treadmill. The company changed course and voluntarily recalled the Tread and Tread+ on May 5, 2021. Foley said in a statement, "the decision to recall both products was the right thing to do for Peloton's members and their families. I want to be clear, Peloton made a mistake in our initial response."
Marketing.
Peloton advertised heavily during the 2018 Winter Olympics, with instructor Robin Arzon joining NBC personalities such as Paul Burmeister and Natalie Morales.
"The Gift That Gives Back" ad controversy.
In November 2019, the company released a new holiday commercial, "The Gift That Gives Back," where a wife receives a Peloton bike for Christmas from her husband, and begins recording a video diary of herself using the bike. A year later, she proclaims that she "didn't realize how much this would change me." In late November, the commercial began to receive criticism from viewers who claimed that its plot implied that the woman's husband was dissatisfied with her physical appearance. Peloton defended the ad, arguing that it was intended to celebrate a "fitness and wellness journey", inspired by how its users were often "meaningfully and positively impacted after purchasing or being gifted a Peloton Bike or Tread, often in ways that surprise them." Criticism over the campaign had an impact on Peloton's share price.
Ryan Reynolds hired the actress that played the wife, Monica Ruiz, for an ad titled "The Gift That Doesn't Give Back" for Aviation American Gin released in December 2019, which lightly mocked the Peloton ad.