Is Peloton Going Out Of Business 2024?

In the wake of the pandemic, Peloton was reported to earn millions in revenue but in 2022, the company started laying off its staff and the top executive also started snapping from the company. So, what happened- Is Peloton going out of business in 2024?

Is Peloton Going Out Of Business

In this guide, we’ve compiled every information regarding Peloton’s rise and fall and what impacted the growth of this top company.

About Peloton And How It Started

Peloton Interactive Inc. is an American exercise equipment media company. It offers stationary bicycles, treadmills, and indoor rowers, which are equipped with internet-connected touch screens that live stream and on-demand fitness classes through a subscription service.

Peloton was founded in the year 2012 by a group of 4 ex-IAC employees named John Foley, Hisao Kushi, Tom Cortese, and Graham Stanton.

They met while working at a media and internet company IAC, while the fifth co-founder of the company Yony Feng, met the group through his roommate, who also worked at IAC.

In an interview with Fortune in 2021, Foley shared that the vision of Peloton was his, but the 4 co-founders of the company ‘took it, ran with it, and built it while I was gone.’

Even before founding Peloton, John Foley was the president of Barnes & Noble, overseeing its e-commerce business.

Who Are The Top Shareholders Of Peloton?

Here are some of the top 10 shareholders of Peloton:

Total value ($)Shares
bought / sold
The Vanguard Group, Inc.8.52%28,894,009184,343,777+710,555+2.52%
Morgan Stanley Investment Management7.52%25,498,349162,679,467-970,822-3.67%
Capital Research & Management Co.6.59%22,335,334142,499,431+12,922+0.06%
T. Rowe Price Associates, Inc.6.07%20,583,028131,319,719-19,572,519-48.74%
Fidelity Management & Research Co.5.25%17,789,705113,498,318+5,707,846+47.24%
BlackRock Fund Advisors3.85%13,034,69083,161,322+1,450,882+12.53%
Newton Investment Management 2.31%7,831,59249,965,557+1,370,299+21.21%
Eminence Capital LP2.27%7,677,22848,980,715+1,290,388+20.20%
Jackson Square Partners LLC2.17%7,349,33646,888,764-254,015-3.34%
Two Sigma Investments LP1.98%6,727,07042,918,707+184,615+2.82%

What Are The Products Offered By Peloton?

1. Bike


Peloton bikes are internet-connected stationary bikes that have a touch screen to facilitate the exercise classes for the subscribers.

The touchscreen device operates on a custom version of Andriod and can be cast from bike to TV and from an app or website to a TV using IOS and Android devices.

2. Bike+


The Bike+ was introduced in September 2020. They come with a rotating feature HD touchscreen monitor that is 23.8 inches.

These also come with an auto-resistance feature, Bluetooth, and clip-in pedals, which require cycling shoes.

3. Tread And Tread+ Treadmills

Tread And Tread+ Treadmills

The Tread+ was launched in January 2018 by the company in Las Vegas. Classes are streamed via 32-inch touchscreen and sound bar, which is mounted at the front of the machine.

Moreover, in late 2021, Peloton added a safety key and ‘Tread Lock’ feature to the tread to increase safety and prevent unauthorized access.

4. Peloton Row Indoor Rower

Peloton Row Indoor Rower

The indoor Rowing machine was announced to be unveiled at its 2022 Homecoming Virtual Event. In September 2022, the company also announced to launch of the Peloton Row, which costs $3,195. It also accepted the pre-orders for the Peloton Row for December deliveries.

The Rise Of Peloton

The initial years of the company were tough as it struggled to find investors.

Foley said “I got 400 ‘nos,'” he said at the time. “The worst part is that we’re not talking about 400 individual pitches. A lot of people would want me to come back four or five times and have me meet more partners and pitch again. I would say that I’ve been turned down maybe five or six thousand times.”

Still, the company managed to get more than 200 angel investors and kickstarted its first bike for $1500 price.

In 2014, Foley began shipping Peloton bikes, and eventually, the big names of the industry started calling the company for funding.

This raised $550 million in venture capital funding at a valuation of $4.1 billion. By that time, Peleton built a cult following.

It introduced more products like treadmills with new types of classes, such as high-intensity interval training and yoga, and by 2019, Peloton reported selling 577,000 bikes and treadmills.

The company went public in 2019, revealing it has 500,000 paying subscribers.

What Impacted The Growth Of Peloton?

Everything was going well for the company until the pandemic became a bane for Peloton.

Initially, the company started with a hike in its share price and subscribers because of being stuck inside people.

In May 2020, Peloton reported a surge of 66% in its sales and 94% increase in subscribers. Then by September, the sales spiked by 172%, with a rising revenue of $607 million.

Soon, this uprise in sales revealed a hole in Peloton’s logistic operation. Delivery time of the new equipment became longer and longer, and the diehard fans of Peloton soon began expressing their frustrations.

Then, the complaints started to flow, stating the issue with the bikes was the pedal snapped off the mid-ride. This resulted in 120 reports of bikes and 16 reports of customers getting injured.

The tragedy hit the company when a child was fatally injured by a Peloton treadmill. The company also made changes in its equipment to ensure the safety of its subscribers.

Soon, the world was healing from the pandemic, but Perloton’s business took a punch with the reopening of fitness studios and gyms.

“It is clear that we underestimated the reopening impact on our company and the overall industry,” Foley said in a call with shareholders.

By January, the company was discussing the layoffs, pausing the production of new equipments and plans to open a new $400 million factory.

Is Peloton Going Out Of Business?

No, Peloton is not going out of business.

Although it has been through a lot of ups and downs during the pandemic and after that, but the company is a long way from bankruptcy.

In February, The Wall Street Journal reported that giants like Apple, Nike, and Amazon are eyeing on the company to acquire it. This resulted in a hike in their stock by 25%.

So, there is simply too much money for Peloton, and if things take a turn for the worse, then they’d likely be acquired by another company.

What Is The Future Of Peloton?

After the step down of its CEO, John Foley, Co-founder and Chief Legal Officer Hisao Kushi, and Chief Commercial Officer Kevin Cornils also left the company.

Peloton then eyed a new potential acquisition named Barry McCarthy as the CEO of the company.

But as far as 2023, the company hasn’t seen any significant growth. On the contrary, Peloton reported a wider-than-expected loss of 79 cents per share and projected its first-ever decline in subscribers.

The company is now shifting its focus primarily to the development of its app and maintaining high quality for its subscribers.

What Are The Membership Charges Of Peloton Classes?

Free classes30-day Trial30-day Trial
Peloton App Free
$ 0 No credit card required.
Peloton App One
or $129/year (save $26)
Peloton App+
or $240/year
(save $48)
Class Programming
Cardio equipment classes: Cycling, treadmill, & rowingLimited free classes3 per monthYES
Strength, cardio, Pilates, meditation, outdoor running, & moreLimited free classesYESYES
Programs and challengesYESYES
Exclusive classesYES
Just Work Out & Peloton GymYESYESYES
Live metricsYESYESYES
Cadence trackingYES
Equipment & profiles
Equipment required No equipment neededNo equipment neededNo equipment needed
Profiles for 1 profile1 profile1 profile
Stream on your favorite smart devicesYESYESYES
Live classesYESYES


Peloton is a company operating since 2012. It has seen a lot of ups and downs with the pandemic and its cofounders snapping off from the company one by one. However, the company is still going strong with McCarthy as its CEO.

The future of Peloton remains uncertain; it still has a lot of money on the table to operate, making it going out of business out of the equation.

We hope this guide provides you with all the information regarding is Peloton going out of business? Or is it just a load of hot air?


Is Peloton still in financial trouble?

Thanks to the new CEO of the company, it is showing improvements. However, it is still fighting for survival in the industry. The company reported an all-time high downfall of 96% in stocks.

Is Pleloton still worth in 2024?

If you are a beginner with a busy schedule, then the Peloton bike is worth it because of the range of classes it provides.

Can Peloton make a comeback?

Despite the limited opportunity for growth and revenue, Peloton has a loyal customer base. Its initiatives to decrease operating expenses and increase gross margin can drive stock valuations in the short term, which might help the company to make its comeback.

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