Peloton launches new approach to B2B service

New York-based Peloton announced the launch of Peloton for Business, its new B2B offering that will supply equipment and content to clients in the sectors of corporate wellness, multi-family residential businesses, hospitality, community wellness, healthcare, education and gyms.

The company will offer access to its Peloton Bike for use by an unlimited number of users, partnership services that provide exclusive programming and offers for audiences of partner brands, and an employee benefit program that provides access to its app, equipment and corporate engagement experiences.

Peloton also announced it created a new leadership role to oversee its B2B services, appointing Greg Hybl as senior vice president and general manager of Peloton for Business. Hybl previously led a team for strategic partnerships at American Express. 

“I’m thrilled to be joining Peloton at such a pivotal time in the development of its B2B strategy,” Hybl said in a statement. “Our goal is to be a solution-oriented partner that provides customizable options for each client’s unique needs, regardless of a company’s size. By offering both holistic and individualized solutions, we can now widen our client base to include small and mid-sized organizations in addition to the larger enterprise businesses we currently serve. We couldn’t be more excited about both continuing the momentum we are seeing with our existing enterprise customers and, by now, bringing the value of Peloton to customers and employees at all levels.”

THE LARGER TREND

Peloton went public in 2019 and saw significant financial growth during the COVID-19 pandemic as customers were forced to leave gyms and work out at home. The connected fitness company, however, struggled after the pandemic boom. 

In February of last year, the company cut around 2,800 jobs, about 20% of its corporate workforce, and in October laid off another 500 workers as it executed a significant financial turnaround plan.

Last year, it also announced it would cease manufacturing its connected bikes and treadmills, outsourcing production to Taiwanese company Rexon Industrial Corp, resulting in about 570 layoffs in Taiwan. 

Additionally, Peloton said it would suspend operations at Taiwan-based Tonic Fitness Technology, the manufacturing facility it purchased in October 2019 for approximately $47.4 million.