INSUBCONTINENT EXCLUSIVE:
Image copyrightJoanna SimImage caption
Joanna Sim is part of a passionate Peloton tribe
Joanna Sim is a
self-confessed member of the Peloton cult
She gets up at 05:00 for the company's classes
She writes about them on her blog for working parents
She doesn't just like Peloton, she says, she loves it."It's almost borderline addiction at this point," she says
Now she's planning to invest.The company, which sells tech-enhanced exercise equipment tied to streaming fitness classes, will debut its
shares on the Nasdaq stock exchange on Thursday, at a starting price of $29 apiece.The offering will raise about $1.16bn, in a deal that
It's a hefty number in a notoriously fickle industry.Peloton acolytes such as Joanna say the company has matched exercise to the age of
social media, combining the convenience of an at-home workout with the interaction and adrenaline rush of live classes
The company, which was founded in 2012, has more than 500,000 subscribers
It went live in the UK and Canada in 2018 and in Germany in May
It has started branching out to new areas, offering classes in yoga and strength-training
High-profile users include Kate Hudson, David Beckham, Leonardo DiCaprio, Michael Phelps, Usain Bolt and more.Image Copyright
richardbransonrichardbransonParticipation is expensive
Peloton's stationary bikes cost more than $2,200 and its treadmills, which it started selling last year, are almost double that
Unlimited access to the streaming classes runs to another $39 a month.Despite the price tag, Joanna says she "took the plunge" last year,
cancelling her gym membership and buying a bike in the hope it would make it easier to fit in more workouts.The mother of two, who lives in
California and works full-time as a design strategist at software company Intuit, has not been disappointed
She says the flexibility of the company's programmes, and the "tribe" of fellow riders she interacts with during a regular 05:00 class,
have kept her coming back for more, and more
Her enthusiasm extends to the firm's financial prospects."They're going to IPO soon and I'm all over it," she says.Money spinnerPeloton
made $915m in revenue in its most recent financial year, more than double the year before, which was double the year before that
But growth has come with costs.Image copyrightPelotonImage caption
Peloton's tech-enhanced equipment offers live
fitness classes at home
Peloton remains unprofitable, losing about $200m last year, as its marketing expense skyrocketed
In the run-up to its flotation, music publishers hit the company with a $300m copyright lawsuit, accusing the firm of using music for its
classes without permission.And sceptics are asking if the firm, which today relies on big-ticket purchases of equipment, has staying power,
given the appearance of lower-cost competitors and fast changing fitness fads."It's very difficult to double every year," says Rett
Wallace, chief executive of research firm Triton
difficult'Other fitness firms testing the public markets in recent years haven't fared particularly well.The pricey cycling studio chain
SoulCycle, which once claimed cachet similar to Peloton, filed flotation papers in 2015.But the company, a subsidiary of property giant
Related Co, dropped those plans last year, citing "market conditions"
This summer, the mood soured farther, when owner Steve Ross's fundraiser for President Donald Trump triggered a customer boycott
YogaWorks debuted on the Nasdaq in 2017, after a growth sprint fuelled by private equity backer Great Hill Partners turned it into one of
the largest yoga chains in the US
Less than two years later, the firm de-listed its shares, amid mounting losses and a warning from the exchange that the stock's price no
longer met the minimum threshold.And it's not just fitness chains focused on live classes that have struggled
Image Copyright thehughjackmanthehughjackmanShares in FitBit, which makes wearable fitness trackers, approached $50 in the summer of 2015,
when the rapidly growing firm went public
But sales soon slumped and today, the shares trade at about $4
Fitness is difficult," says Mr Wallace
"If you rely on the sale of hardware, even Apple shows us that if you're not reinventing your hardware all the time, your life can become
difficult.""Peloton seems to have established a brand for itself and has a very loyal user base," he adds
"We'll see if that sticks."Joanna says she's heard the doubts but her experience convinced her that Peloton has a long ride ahead of
it."Given the amount of content that they're pumping out and the leadership that they have I have full confidence," she says.
