Tech
Peloton might introduce two new workout machines
The debt-ridden company isn't letting continued losses stop it from experimenting.
Peloton Interactive is planning to add two new pieces of equipment for next year, according to a report by Bloomberg. The company, behind some of the smartest workout bikes on the market, is said to be developing a rowing machine and a treadmill that will be less expensive than its current $4,000 option.
Peloton's new equipment would be the first hardware since its first treadmill was released. That said, it is still uncertain when these products could arrive. Peloton’s stock increased by as much as 9 percent when the news broke.
New app options — Right now, Peloton’s exercise classes are only available via its expensive, specialized workout equipment and smartphones. But, according to people familiar with the company’s plans, Peloton has been exploring app options for Amazon Fire TV and the Apple Watch, which would complement their existing options.
Peloton is still losing money — Peloton is not doing well by any metrics. In the two months since the company went public, all investors have been able to talk about are its expensive growth goals — the company’s most impressive statistics in recent months are about how it keeps bleeding money. In October, Reuters reported that the company’s stock had fallen 24 percent since its public debut.
A stormy future — The company has attracted a fairly sizable crowd with its unique fitness offerings — more than 500,000 people take Peloton classes each month — but its expensive products and high overhead have kept it in debt since it opened with a Kickstarter campaign in 2013.
“I believe if we pulled back on growth, we could be profitable tomorrow,” Peloton CEO John Foley said. However, the company’s latest earnings reports show a net loss of $49.8 million in the most recent quarter, and yet Peloton is still investing in international expansion and new content, so it could be a long time before it turns profitable.
