How Peloton became a $700 million fitness powerhouse for runners, yogis, and more

Seven years after launching as a stationary bike company that allowed subscribers to live-stream digital cycling classes, Peloton has morphed into a $700-million-a-year-in-revenue fitness powerhouse that produces hundreds of hours of videos for a community that includes runners, yogis, and more. “We are a content creation shop at this point,” says cofounder and CEO John Foley. In 2018, Peloton debuted its Tread machine, along with a second studio in New York City, where it now films boot-camp, yoga, running, and even guided-meditation classes led by instructors whom fans have turned into stars. Last year, the company also introduced a $19.49-a-month digital subscription (no hardware purchase necessary) that includes access to more than 20 live classes daily, with an additional 10,000 available on demand. The key, according to Foley, is that “they’re real classes. You’re part of the experience.” They’re so interactive that a user logging in to a yoga class from her home in L.A. may get a shout-out from the instructor in New York. A London studio is now in the works, and a 35,000-square-foot mega-studio in Manhattan is slated to open in early 2020.