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Global Economy

Perceived end of the pandemic: why the expensive Peloton bikes are no longer going uphill

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In the Peloton commercial on TV, slim, athletic people pedal and are urged to keep going by a tough trainer on the screen with rhythmic music. Workout in the living room – that was the hype during the pandemic.

But in the meantime, the spots can hardly be seen on television. The new episode of "Sex in the City" causes excitement when a longtime lover of the heroine dramatically overexerts himself during a workout on the peloton.

Peloton Interactive's stock fell 24 percent last Thursday after CNBC reported that production of certain digitally linked bikes and treadmills (called treads) would be temporarily halted in February and March due to lack of demand.

According to the Wall Street Journal, CEO John Foley said the production stop announcement was false. but the company must cut costs. As an absolute last resort, the peloton boss did not rule out layoffs.

"We said layoffs would be the absolute last resort we would ever hope to pull," the CEO wrote in a note to employees. "However, we now have to review our organizational structure and the size of our team."

As of June 2021, the New York-based company employed around 6,700 people in the United States alone.

On Twitter, Foley tries to spread good cheer in the form of a steep upward curve of the number of subscribers that Peloton wants to help lead "a healthier, happier life."

But apparently Peloton is falling short of the company goals it has set itself.

In the US media, the reason for the decline in popularity of fitness bikes and courses via app and Internet is "the perceived end of the pandemic". Despite the omicron variant of the corona virus, people are apparently returning to the fitness centers.

An interactive peloton bike – delivered and set up on site – costs from €2,000 upwards. In addition, there is a monthly subscription from 39 euros to update the daily new courses. In times of rising prices, many people are apparently reconsidering whether they want to spend so much money on their workouts in the living room.

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