Is It a Bad Idea to Buy a Peloton Right Now?
As a string of setbacks—tanking earnings, layoffs, recalls—continues to knock Peloton off its pandemic-built pedestal, you might wonder if spending top dollar for its signature bike is worth it right now. If you have your heart set on pedaling in place within the Peloton universe, we think you’ll still be very happy doing so even in light of the company’s current woes. The Peloton Bike (see our full review for more) combines excellent equipment, top-notch workout content, ultra-engaging instructors, and a fervent (some might say fanatical) community of impassioned riders. But buying one of the company’s bikes or treadmills is not without risk. Now, as questions about Peloton’s future abound, here’s what we know.
What is going on?
As unprecedented interest in working out from home ebbs, Peloton’s popularity and profitability have cooled. The connected-fitness company was a pandemic darling. The Peloton Bike debuted in 2014, but Peloton didn’t make its first quarterly profit until early 2020. By the third quarter, revenue had jumped 232% year over year. But the boom took a toll, and Peloton struggled to keep up with demand. By the third quarter of 2021, its connected-fitness equipment sales had dropped 17% year over year. The company ended the year with a $439 million loss and shifted its revenue forecast down for 2022.
After a prominent Peloton investor advised Peloton’s board of directors to fire CEO John Foley and consider selling the company, Peloton replaced Foley in early February (he moved into an executive chairman role) and announced that it would lay off 2,800 employees globally. The company said the layoffs would not impact its instructors or its content, and the promise of new products continues: A $90 heart-rate armband debuted in February, and Peloton Guide, the brand’s strength-training “experience,” is expected this spring. As for a sale of the company, Apple, Amazon, and Nike have all been mentioned as possible buyers.
The dips in demand for Peloton equipment are due in large part to shifts in buyer behavior as the pandemic evolves, as well as, perhaps, to the ripple effect of last year’s recall of its now discontinued Tread+ treadmill following more than 70 reported incidents, including one child’s death. The Peloton Bike made a pair of rather dark cameos on trendy TV shows, HBO’s And Just Like That in late 2021 and Showtime’s Billions in early 2022, prompting PR scrambles. In addition, several Peloton employees have sued the company for pay-related missteps.
How has Peloton responded?
In reaction to the downturn in business, the company has announced layoffs, replaced Foley, and—most directly as far as buyers are concerned—increased prices. After dropping the base price of the Bike from $1,895 to $1,495 in 2021, the company changed course in early 2022: On January 31, Peloton began charging a $250 fee for the delivery and setup of the Peloton Bike—a courtesy once included in the base price. It tacked a similar fee ($350) onto its treadmill, the Tread. (The Peloton Bike+, the upgraded model of the Bike, still incorporates delivery and setup into its $2,495 sticker price.) Peloton attributes the price hikes to inflation and supply-chain issues.
Is it a good idea to buy a Peloton Bike right now?
Despite Peloton’s current woes, ardent fans remain bullish on the company. And the numbers prove it: By the end of December 2021, the company had 2.77 million connected-fitness subscribers (compared with 1.67 million a year prior) and 862,000 app-only subscribers (up from 625,000 the previous year). Real-time connection and camaraderie are what draw people to the brand, and a Peloton Bike becomes largely obsolete if the connected-fitness part of the business is not supported. Considering that those millions of subscribers are still paying a monthly membership fee, the Peloton universe is unlikely to collapse altogether. (If you own a Peloton Bike and choose not to pay for a subscription, you’re left with three prerecorded classes and the uninspired Just Ride mode.)
Peloton, of course, isn’t the only game in town when it comes to connected fitness. There are other bikes that you can use with or without the Peloton app, as well as bikes we’ve reviewed that are meant for use with their own branded workout content or with no content at all. For those disinterested in a Bike but eager for a taste of Peloton, the company’s app ($13 a month) allows for streaming Peloton workouts of all kinds.
If you still find a Peloton Bike intriguing, you can buy a new one now with reasonable delivery times (currently from two to three weeks). A used Peloton Bike could also be a possibility. The unofficial Peloton Buy, Sell, Trade Facebook group is nearly 200,000 members strong. Facebook Marketplace, Craigslist, and eBay list dozens of for-sale Bike and Bike+ units and potential deals to be had. And unlike earlier in the pandemic, these days used bikes are rarely being sold at new-bike prices.
As with the purchase of any used fitness equipment, you should glean as many details as possible about that particular bike’s past life from the seller: How often was it used? How many people rode it? Were any parts problematic or replaced? If you can, take a test ride. Remember that a warranty cannot be passed from an original owner to a new owner. (Peloton addresses used-bike sales on its website.)
Whatever you decide—and no matter the state of Peloton the company—it’s important to put some thought behind the purchase of an expensive piece of exercise equipment. Think about how often you’ll use it, how much space it will take up in your home, and whether streamed classes really appeal. Millions of people have found motivation, fitness, and friendship within Peloton’s virtual world. Whether you choose to ride along is up to you.
This article was edited by Kalee Thompson.