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FORTUNE.COM // APR.1.
YOUR NE X T
COCK TAIL
WILL BE
PREMIXED
BOOZE
Peloton’s Climb
The leader in bringing studio workout classes
to the masses is going public. By Daniel Bentley
BY NOW YOU’VE seen the ads. A trim
young professional is riding an exer-
cise bike in a perfectly appointed high-rise apart-
ment, his face lit by the glow of a tablet in front of
him. You can’t hear the instructor on the screen,
but you can imagine the sort of motivational spiel
being called out to the riders.
This is Peloton, and it’s the biggest thing in
home exercise since Jane Fonda in leggings. The
company, founded in 2012, sells its proprietary
bike for $2,245 and a monthly subscription to
video streams of its live and on-demand classes
Now Peloton is
preparing to do what
SoulCycle backed out
of doing in 2018: go
public. When it files,
analysts will be keen
to learn the margins
on both its high-
priced equipment
and subscriptions.
It’s that combination
that has been irresist-
ible to investors. The
company has raised
just short of $1 bil-
lion in private money,
with a valuation as
of its last round of
$4 billion.
With further
growth, user reten-
tion will be key. Pelo-
ton instructors, social
media celebrities in
their own right, do
an impressive job
at keeping home
riders engaged. But
as classes balloon in
size, they risk losing
that personal touch.
If it can keep
that boutique-class
feel, even as 10,
people ride along
concurrently, Peloton
will continue to lead
the pack.
UNICORNS
SOMETIMES WE ALL FEEL THE NEED for speed—more often than
not at happy hour. That’s why bartenders are increasingly
turning to premade and bottled cocktails to cut down on wait times and
boost sales. New York City’s Dante, known for its signature negronis, has
been pre-batching drinks since the bar was revamped in 2015. And cus-
tomers don’t seem to mind—or even notice—that their cocktails aren’t
always made to order. ÒI don’t think customers care either way,Ó says the
bar’s creative director, Naren Young. ÒWhat they want is to get a drink in
their hands quickly, which puts everyone at ease and sets up the right
pace for their experience.Ó —RACHEL KING
for $39. Last year
it introduced a
$4,295 treadmill and
expanded its class
offerings.
A marketing blitz
has pushed Peloton’s
user base past that of
rival SoulCycle. Ac-
cording to credit card
transactions analyzed
by Second Measure,
Peloton eclipsed
SoulCycle in 2018.
Peloton hasn’t re-
leased user numbers
but says it doubled its
subscribers last year.
Peloton’s
proprietary
bike retails
for $2,245.
Classes
not included.
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