The first rule of the Peloton club is that you talk (incessantly) about the peloton club.

Peloton's IPO announcement was as quiet as the flywheel on one of their bikes this week.  

This is one disruptive fitness craze that I predict will be uniquely profitable for the long term.

I’ll admit it - I was a cynic for the last couple of years as my peloton owning friends would share pictures and statistics of their favorite instructors and I would quietly roll my eyes waiting for their fad to end. It didn’t. It got bigger. 

When I injured my toe and could no longer CrossFit, I decided to try out the bike and fast became addicted.

For those who haven’t heard, Peloton is a spin bike with a giant screen where you can ride against friends or strangers live or at a time convenient to your life. It sells bikes for $2,000 and treadmills for $4,000 and to access the classes you pay $39 a month.  

Peloton has raised $1B in outside funding already with a current valuation of $4B as reported by CNBC.

Here’s why Peloton is so unique and the envy of many businesses:

* Giving customers ultimate freedom on how to consume their products - Live class or recorded; 15,30,45, or 60m duration; hip hop, country, or live DJ; low intensity or intervals; the choices seem endless.

* It’s instructors have become stars - Take a look at Ally Love or Alex Toussaint’s social followings and you’ll see Peloton is making stars out of their instructors, it’s a big risk for them that they are taking care of and nurturing long term relationships as the instructors are becoming as strong individually as the collective Peloton brand.

* The statistics and leaderboards are addictive - I nearly fell off my bike when my friend in Palo Alto started FaceTiming me while I was on my first ride as the Peloton team were setting up my bike in my house. Whether you compete or not, knowing which rides your friends have completed and following a program with friends around the world creates a stickiness like no other fitness experience. 

* The strength of community is powerful - Using #hashtags you can identify people in your city, age group, or with similar interests to ride with. 

* It has a raving fan base - It has multiple Peloton Facebook groups with members in the 100,000’s. As a frequent traveler, I was delighted to find a Facebook group solely to help people book hotels and air b&b’s that have Pelotons. I’ve even seen members allowing other members to come to their house to share their bike so they don’t loose their unbroken ride streak. 

* Century Ride T-shirts - Do your customers crave swag that shows off how often they use your products? Peloton sends riders a Century Ride T-shirt celebrating your 100th ride. These T-shirt’s have been sold on eBay for $150,000!!!

The truth will be in the numbers when the IPO is revealed. Right now it seems that it is beating Soul Cycle by 4% and has doubled members since last year, according to Second Measure data analytics firm. With running, yoga, and meditation added to the mix, Peloton is here to stay and their IPO will be one to watch. 

It’s no fad. 

Dedicated to growing your business,

Val

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