Reply To: Peloton’s prospects amid rumours of potential Nike/Amazon purchase?

[Andrew Spencer]

Hi Xenia

I think that Nike and Peloton would be a perfect match.

I remember Peter in the subscriber zoom call saying that Peloton’s greatest asset is their community. With Nike’s Run Club app, they have 100 million users. I think a big part of the success involves being able to create leaderboards and join virtual and in-person running events. Additionally, you can send prompts and track your friends’ progress in the app. I think this technology would work perfectly with Peloton’s existing online classes.

I also agree that a deal with gyms would benefit Peloton, especially given the strong return to gyms over the last few months. I think this would be an inexpensive option and Peleton could offer to install equipment for free to boost their profile to regular gym-goers who did not purchase their products during lockdown.

Overall, something is definitely required given Peloton’s struggles even after price reductions.