Now that the purchase of Precor is complete, Peloton is expanding its commercial footprint in the hospitality market, the company announced on Sept. 20.
The company also plans to expand how it works with other commercial spaces, but it did not offer details at this time.
Its new Peloton Commercial portfolio includes the original Peloton Bike and Precor’s catalog of strength and cardio equipment.
Peloton completed its $420 million purchase of Precor in April. The purchase was made to not only allow Peloton access to additional users but also access to the two Precor manufacturing facilities in the United States that presumably would help the company catch up on a backlog of online orders of its products, particularly those from inside the United States. During the height of the COVID-19 pandemic in 2020, Peloton sales tripled and the company’s manufacturing facility in Taiwan could not keep up with demand.
In May, Peloton announced it would begin construction during the summer on a dedicated Peloton manufacturing facility in the United States that would produce the Peloton Bike, Bike+ and Tread.
The move to expand its presence in the hospitality market is a B2B play for the company and was one of the main reasons for purchasing Precor, Brad Olson, Peloton’s chief business officer, told CNBC.
Hospitality partners in North America and Europe can now purchase a full suite of equipment. Peloton Commercial also works with hotel partners to offer in-room Peloton Bike experiences.
In April when Peloton announced it had finalized the purchase of Precor, Rob Barker, who is Precor CEO and Peloton Commercial general manager, said: "The next few months are going to be some of the most exciting as Precor and Peloton work together to build for the future and empower more people to live the lives they desire. With Peloton Commercial, we expect we'll be able to not only continue our relationship with our current customers but scale the Peloton experience that millions of people have at home to even more hotels, campuses and multifamily residences."
In August, Peloton reported fiscal fourth quarter 2021 revenue of $936.9 million, which was less than the $1 billion in revenue reported in its third fiscal quarter. The company also shared at that time that it had been subpoenaed by two U.S. agencies related to reporting of injuries allegedly sustained on its Tread and Tread+ treadmills.
In May, Peloton recalled its Tread and Tread+ treadmills plus had multiple lawsuits file against it related to those injuries.
In June, it announced expansion into the corporate wellness market by allowing business owners to offer subsidized access to Peloton digital and all-access memberships as well as exclusive benefits on connected fitness products.
In July, UnitedHealthcare announced it will offer its 4 million commercial members a 12-month subscription to a Peloton Digital Membership or a four-month subscription to a Peloton All-Access Membership as part of its plan benefits.
Earlier this month, Peloton launched a private label apparel brand.