Peloton launches second generation bike and cheaper version of treadmill

Peloton, the hotly anticipated gyms to fit into your living room, has raised nearly $500 million from investors, as Bloomberg reports. But the buzz is not around the great technology, the revolutionary treadmill that focuses on interval training, but rather over price.

In 2018, Bloomberg reported, the original Peloton bike cost $2,900; this newest model retails for $3,000. At a time when Americans are spending plenty of money on gym memberships—and especially on treadmills—that’s a shock.

One big reason: your second and third bicycles are not cheap. The 17-day Peloton classes vary in price from $225 for one to $375 for 10. So many people must own at least two bicycles to get the full experience.

The Great Recession killed a lot of businesses. Not so Peloton, which kept accelerating: it doubled its office space, thanks to demand from investors and employees. It brought on a new CEO, Andy Kalisman. With the support of venture capital, a machine designer, and a drummer/sound engineer, it went from concept to solidity and accelerated to gold.

But some people, particularly older people who have not kept up with the latest in fitness, do not want to go spinning. Maybe they are just too old to like it, not to mention afraid of baring their midriffs. But there’s an easy way around that problem: wear masks.

In this excerpt from Jonah Lehrer’s new book, “How to Win Friends and Influence People,” he describes what we can learn from Peloton’s data-driven approach to creating business models. Excerpted with permission from his book. Copyright (c) 2019 by Jonah Lehrer. All rights reserved.

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