[HN Gopher] Peloton got trapped in its trillion-dollar fantasy
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       Peloton got trapped in its trillion-dollar fantasy
        
       Author : pseudolus
       Score  : 30 points
       Date   : 2022-03-10 11:31 UTC (1 days ago)
        
 (HTM) web link (www.bloomberg.com)
 (TXT) w3m dump (www.bloomberg.com)
        
       | neonate wrote:
       | https://archive.ph/Ido3K
        
       | kderbyma wrote:
       | I must be one of the few who didn't know what peloton was really,
       | heard it said once in a while but just thought it was nothing but
       | a type of bike. apparently I am not their target demographic
        
       | ChildOfChaos wrote:
       | Well of course, Peloton is an extremely niche product available
       | to a rich few.
       | 
       | Trillion dollar company is a joke.
        
         | gkoberger wrote:
         | I am not surprised that it hit a post-COVID wall, but I don't
         | think this is true at all.
         | 
         | If you finance it, it's not significantly more than a gym
         | membership every month. It's crazy to say fitness is a niche
         | product; I think everyone's parents have a treadmill or
         | nordictrack collecting dust in the basement. People have been
         | buying home fitness equipment for decades.
        
           | beAbU wrote:
           | Does your gym membership give you access to only one exercise
           | bike?
        
             | icegreentea2 wrote:
             | Peloton is price competitive with standalone (ie: not
             | tacked onto a big-box gym membership) spin classes.
             | 
             | I don't think Peloton is worth a trillion dollars, but the
             | market is serves is real.
        
               | LordDragonfang wrote:
               | Maybe I'm out of touch with what working-class people do
               | for fitness, but my understanding is that standalone spin
               | classes _also_ mostly fall under the domain of  "niche
               | [service] available to a rich few." (Or at the very
               | least, upper-middle class)
        
               | browningstreet wrote:
               | My 80,000 sq ft mega non-chain gym includes unlimited
               | spin classes for $50/mo.
               | 
               | Can we stop with the indiscriminate "privilege" thing for
               | anything that costs money?
        
               | SturgeonsLaw wrote:
               | With around 60% of Americans living paycheck to paycheck,
               | paying for things like spin class absolutely falls under
               | the banner of privilege. Yeah, it's not a private jet,
               | but paying to burn off the excess calories consumed over
               | the month is surely at least a little bougie.
        
             | gkoberger wrote:
             | No, but my gym also doesn't do fun on-demand classes with
             | well-known instructors that I can do with my friends.
        
         | seanp2k2 wrote:
         | "A rich few" maybe on a global scale. Out of people I know who
         | have one, I think the person with the lowest-paying job is a
         | bartender in the Midwest. It's comparable to a nice home
         | weightlifting rack. It's half the price of a budget motorcycle.
        
           | Railsify wrote:
           | I friend of mine just bought a 1600 dollar model, you can get
           | a flagship cell phone for about the same amount.
        
         | [deleted]
        
       | mupuff1234 wrote:
       | Peloton has a great product and a surprisingly sticky following.
       | 
       | If they can reel in the spending while keeping the same high
       | quality I think they have a decent future.
        
       | sys_64738 wrote:
       | They were just the next Go Pro. A craze that eventually runs out
       | of steam.
        
         | plorkyeran wrote:
         | Being the next Go Pro seems like a good goal for a company.
         | Their stock crashed when it became clear that they weren't
         | going to sustain crazy exponential growth indefinitely, but
         | they didn't overinvest in trying to sustain their growth rate
         | and have spent the last five years operating at a comfortable
         | profit while still growing a bit.
        
         | moltke wrote:
         | The older Go Pro actually works pretty well if you don't own a
         | phone. People love the pictures I take with mine while I'm out
         | sailing.
        
       | medymed wrote:
       | It tapped a newish market and invested in a self-bubble. The
       | market will stick around. Time for commoditization.
        
         | usrusr wrote:
         | Commoditization in this case would mean unbundling of hardware
         | and service and that very much exists already, and is far from
         | stealing Peloton's lunch. There's Zwift (an investment fantasy
         | story for another time, as wild as Peloton's but with slightly
         | less digits) and about half a dozen "baby zwifts" that might
         | even be profitable or at least close but suffer hard from being
         | outside of the brand lock-in of the big players.
        
       | stathibus wrote:
       | The Larry Page toothbrush principle seems applicable here.
        
         | abrichr wrote:
         | From https://medium.com/behavior-design/the-toothbrush-trick-
         | used...:
         | 
         | > Larry Page, CEO of Alphabet (the company formerly known as
         | Google), has a quirky way of deciding which companies he likes.
         | It's called "The Toothbrush Test." According to the New York
         | Times, when Page looks at a potential company to acquire, he
         | wants to know if the product is, like a toothbrush, "something
         | you will use once or twice a day."
        
       | MengerSponge wrote:
       | I bought a Concept 2 BikeErg
       | <https://www.concept2.com/bikeerg/concept2-bikeerg> two years
       | ago, and have really enjoyed it. It's solidly built, it accepts
       | standard cycling components (I replaced the stock pedals for some
       | clipless ones), and the damper-flywheel is smooth and somewhat
       | realistic.
       | 
       | At $1k, it's both very expensive and much cheaper than a Peloton
       | or NordicTrac bike. If you're looking for a home setup, I highly
       | recommend it. It won't help you if you need classes or other
       | social interactivity, but my exercise time is me time.
        
         | Wojtkie wrote:
         | My gym has all Concept 2 equipment and I really enjoy them.
         | Simple to use, they feel really great, too.
        
         | mcaravey wrote:
         | We bought the Concept2 SkiErg and Rower a while back
         | specifically because they were used in gyms in the area and
         | held up to daily abuse well. The quality is fantastic
         | considering we paid about $800 each. Highly recommend the
         | Concept2 equipment.
        
       | dboreham wrote:
       | Drinking the Kool Aid. Very common.
        
         | lowdose wrote:
        
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