There’s been a major boom in the bike industry during the coronavirus pandemic as more people are turning to all kinds of riding for recreation, exercise, or transportation. And because many are choosing to stay active indoors, Peloton, the popular indoor bike and fitness company, has experienced a jump in revenue and memberships. A recent shareholder letter said the company saw a 66-percent increase in revenue year-over-year in its third quarter, which ended March 31.
That isn’t the only impressive statistic. Peloton also saw a massive 92 percent year-over-year increase in subscription revenue and a 94 percent growth in its number of connected fitness subscribers.
So, how much of that is a result of the coronavirus, which the World Health Organization (WHO) declared to be a global pandemic on March 11? One telling statistic: the company broke its record for most exercises in a day on March 25, at over one million.
Peloton has adapted to the circumstances surrounding the pandemic. Peloton announced on March 15 that it was suspending in-person classes and closing its indoor cycling studios. On March 19, Peloton put certain services on hold, like Tread delivery, in-home servicing for its equipment, and return pick-up. The company closed its New York City and London studios on April 7, which halted live class production for at-home users (they resumed a few weeks later). But setbacks in certain areas have been met, and perhaps even offset, by a demand for other services.
“During the last few weeks of Q3, we saw a significant increase in demand for our Bike which has continued into Q4 so far,” Peloton’s report stated.
The company has continued producing new, live content, now from instructors’ homes. The first “Live From Home” ride with instructor Robin Arzon had over 23,000 members participate during its live streaming.
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Beyond the adaptations for its growing membership, the shareholder letter outlined the measures Peloton is taking to give back to those in need during this difficult time, like expanded benefits for employees. It’s also been donating at-home bikes to healthcare workers through the Comeback Program.
“The Comeback is our donation program of 50 Bikes every month to individuals and organizations on uphill journeys who can benefit from the support of the Bike and Peloton community,” the letter stated. “In April, we extended our existing Comeback Program by donating 200 Bikes to hospitals and healthcare professionals.”
On top of that, Peloton has donated 95,000 KN95 masks and 50,000 surgical masks to New York City.
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