Peloton's revenue was down and it suffered a biiiig loss... so now it's teaming up with Amazon to get back to the top.
👉 Background: Peloton is the company that started way back in 2012 with a $250,000 Kickstarter campaign. Since then, Peloton has gone on to become the at-home bike of celebs like Lizzo, Roger Federer and even Mr Worldwide, Pitbull.
👉 What happened: Late last week, Peloton announced that its revenue was down 28% for the last financial year as well as a $2.8 billion loss. Ouchhhh.
👉 What else: To get back on top, the Peloton has announced a new partnership with Amazon to distribute its bikes. Not exactly the ‘premium’ partnership you would’ve imagined a couple of years ago.
💡Premium brands face a double-edged sword when looking to grow. By appealing to the masses, they may dilute their brands. But if they don't sell mass-market, they may not grow.
💡Over the last 10 years, Peloton has OBSESSED over its brand image and customer experience. But this partnership with Amazon means it starts to relinquish some control and lose some of that prestige.
💡 There are supposedly half a million searches a month on Amazon for Peloton’s products. And while selling via Amazon may take the shine off Peloton’s ‘exclusive’ vibe, it looks like Peloton is willing to sell anywhere it feels it can grow.
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