Peloton has a new program to keep employees fit as they return to offices
- Peloton unveils a new corporate program targeting more users to grow its membership base.
- Corporate members of signed up businesses to receive customized features
- Peloton membership surged during the pandemic as people turned to home workouts
Peloton Interactive Inc. (NASDAQ: PTON) launched a corporate wellness program on Tuesday as the company seeks to reach more customers and expand its user base. With the launch, businesses signing up will offer their employees subsidized Peloton digital fitness membership to access its treadmills and high-end cycles.
Peloton adapts to post-lockdown scenarios
The at-home fitness company that saw a surge in demand amid the COVID-19 pandemic is looking to diversify its business as more companies expect workers to return to the office while some companies are making it mandatory. To address the fact that its core consumers will no longer have easy access to their fitness equipment at home, Peloton is teaming up with corporate partners to offer customized features, including group exercises and team tagging.
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These features also seek to enhance the bonding among colleagues and encourage accountability. Equally, Peloton will help corporate partners with setting up office fitness spaces. Some of the first corporate clients that have signed for the business program include Samsung Electronics (LON: BC94), Wayfair Inc. (NYSE: W), SAP (NYSE: SAP), and UK telecommunication giant Sky.
Peloton President William Lynch stated that the new offering would be one of the company’s most significant growth channels. He added that the company began investing in the business wellness program last year following requests from companies to collaborate.
New features for enticing employees to return to offices
The office fitness perks will help companies lure people back to the office after the pandemic or help in staff retention in a highly competitive labour market. In recent times, employees have been seeking health-related benefits at work, and most are preferring workplaces where there is a balance between work and life.
According to Lynch, employers are starting to see a connection between productivity and healthy employees. Besides running and cycling content, the Peloton fitness app equally includes yoga, strength, and mediation classes. He said:
“With the return to work, and as companies acknowledge that they need healthy employees — especially coming off the pandemic — we’ve seen incredible demand for the platform. We feel like our timing is great.”
Peloton saw membership surge during the pandemic
Peloton’s membership and demand for its equipment surged at the height of the pandemic, leading to the stock soaring over 400%. However, year-to-date shares are down 29% primarily due to concerns that with COVID-19 easing, people are likely to head back to fitness boutiques or the gym and shun home workouts.
In 2020 the company’s revenue almost doubled to $1.8 billion, with the number of connected fitness members standing at 2.08 million.