INSUBCONTINENT EXCLUSIVE:
It makes lazy people like me work out
That’s the genius of the Peloton bicycle
All you have to do is velcro on the shoes and you’re trapped
You’ve eliminated choice and you will exercise. Through a succession of savvy product design choice I’ll break down here, Peloton
removes the friction to getting fit
It’s the leader in a movement I call “pushbutton health”
And this is why I think Peloton will be a big succes no matter what short-term investors do when it IPOs this week after raising $994
million in venture capital.The bikeBasically, Peloton is a $2300 stationary bike with a tablet stuck to the front
The $40 per month subscription unlocks thousands of live and on-demand video cycling classes where instructors positively yell at you
When you think you’re tired already, they look into your eyes, tell you “you got this”, the soundtrack crescendos, you crank up the
resistance, and you pedal harder at home
The resulting endorphin rush is addictive, and you find yourself persuading friends they need a Peloton too.That viral loop which adds to
its 500,000 subscribers is how Peloton plans to raise ~$1.16 billion going public this week at an ~$8 billion valuation
Its revenue doubled this year as it began to dominate the connected exercise equipment market, though losses quadrupled as it burned cash to
But after riding 110 of 150 days I’ve been home since buying its bike, I’m confident in the company
Whatever it invests now to build its lead will likely be paid back handsomely by its increasingly handsome customers who can’t bear to
Here’s why.Peloton classes are recorded in front of a live studio audience of ridersThe Shoes – Usually the activation energy to start a
workout requires dragging yourself to the gym or suiting up to face the elements outside
That can be daunting enough that you rarely do
But once you slip into the Peloton bike shoes, you can hardly walk normally which means you can hardly procrastinate
You’re home so you don’t even need clothes
Just a few velcro straps and you’re over the hump and resigned to exercise.The Clips – Home gym equipments reduces the barrier to entry
but also the barrier to exit
You can tell yourself you’ll keep doing push-up sets or squats jumping rope, but you can stop any time
Yet after you’re clipped into the Peloton bike, you’re almost assured to keep pedaling until the instructor gives you that end-of-ride
congratulations.Just put the shoes on and you’ll exerciseThe Schedule – You can get a sweat in just 10 or 20 minutes going hard on a
Combined with zero commute, that means you’ll practically always be able fit in a ride regardless of how busy you are
No more “I don’t have time to make it to the gym so I’ll just skip out”
When my calendar gets crunched or I dawdle a little before deciding to ride, classes as short as 5 minutes ensure there’s no weaseling
out.The Instructors – I wish I had these coaches to motivate me through sorting email
Peloton’s 20+ instructors range from hippie-dippie gurus to no-nonsense trainers that fit your personality type
You find yourself craving your favorite’s special brand of relentless positivity
I burn far more calories in a shorter time than exercising solo because they inspire me to push a little harder or they slow their countdown
to add a couple all-out seconds to the end of a sprint
They’re even becoming celebrities, with bankers lining up for selfies during Peloton’s IPO road show
Sick of them? You can always Scenic Ride through video of some of the world’s prettiest bike paths.Peloton instructors (from left): Alex
Toussaint, Emma Lovewell, Ben Alldis, and Leane HainsbyThe Intimacy – You’re eye-to-eye with those instructors as they stare into the
camera and out of the giant screen bolted to your handlebars
That generates intimacy despite them broadcasting to thousands
Even in person, a SoulCycle coach across the room can feel further away
You’re mostly guided by audio cues, but their gaze compels you to perform
Peloton almost feels like FaceTime, and that’s a sense of connection many long for more of these days.The Pavlovian Response – Your
brain quickly begins to associate the sounds of Peloton with the glowing feeling of finishing a workout
The rip of the velcro shoe straps, the click of clipping into the bike, but most of all the instructor catch-phrases
You get hooked on hear the bubbling British accent of “I’mmmm Leeaannne Haaaaainsby” as she introduces herself, Ben Alldis’
infectious “You got 5, you got 4…” countdowns, or Emma Lovewell reminding you to “Live, learn, love well”
That final ‘namaste’ followed by wiping down the bike and jumping in a cold shower forms a ritual you’re inclined to
repeat.Eye-contact with the instructors creates an intimate bondThe Soundtrack – Popular songs are more than just a pump-up accompaniment
Your pedaling pace is often pegged to the tempo, with sprints starting when the beat drops
As your legs tire, you feel obliged to maintain your speed so you don’t fall behind the drums
You can even search classes by music genre and preview each’s playlist
Peloton has paid out $50 million in royalties for its music, and faces $300 million-plus in lawsuits for copyright infringement
But having the best tunes to bike to might end up worth the penalty since it helped Peloton race ahead in a lucrative market.The Bike As
Decor – Most home exercise equipment ends up in a closet or as a clothing rack
By designing its bicycles for beauty, Peloton coerces you to place them conspicuously in your home
You might have seen the hysterical Twitter thread parodying this practice, but it’s funny because it’s true
You’re a lot more likely to ride it if it’s central to your home (ours is between our bed and the doors to the veranda), and you’ll be
embarassed if visitors ask about it and you haven’t hopped on recently.“A good place for your Peloton bike is between your kitchen and
your living room facing the cactus garden so you always remember virtual spin class” –ClueHeywood on TwitterThe Network Effect – Many
of these smart product design moves could be copied by competitors
But by amassing a community of 1.4 million members to date, Peloton benefits from social features and economies of scale
You can ride together with pals over video chat, send each other digital high fives, or race and compare achievements
Each friend that joins Peloton is one more reason not to sign up for a competitor
The whole concept virtual personal training is being legitimized
And the cost of producing more classes gets spread wider as membership grows.The Shared Accounts – Peloton has even built in a way to feel
noble about your sanctimonious prosyletizing about how it “jumpstarted your metabolism”
Each $39 on-bike subscription allows unlimited accounts on up to three devices, so you can hook up some friends if you convince them to buy
the big-budget gadget.High-five fellow riders as you virtuall pass themThe Growth Hacks – Peloton streaks are for adults what Snapchat
streaks are to kids: a clever way to reward consistent usage
But beyond the achievement badges displayed on your profile, you’ll get in-ride leaderboards full of people to proudly pass, progress bars
to fill by pedaling, and kilojoule output high scores to beat
Peloton makes exercise a game you want to win.The Shoutouts – Yet Peloton’s most explicit levering of our psychology comes from the
in-class name-drop shoutouts instructors give
Whether mentioning the screen names of a few participants at the start of a session or congratulating users hitting their 50th, 200th, or
500th ride, the recognition pushes people to join the dozen live-streamed classes each day that add urgency to the on-demand catalog
Proof it works? People strategize to ensure their 100th ride is a long live class to maximize the chance of a shout-out.A free cult shirt
after your 100th rideThe ‘Transcendence’ – Peloton minimizes the isolation from working out at home
In fact, its whole product enables people to feel ‘glamorous’ and ‘manifested’ yet nonchalant in ways going to a sweaty gym or using
It’s like being able to buy a little piece of the smug satisfaction and in-group affiliation of going to Burning Man
That’s why the company even sends you a free “Century Club” t-shirt when you hit your 100th ride
You’re meant to feel cool sharing that you “Peloton”, using the startup’s name as a verb.—Conspicuous Self-ActualizationStill,
Peloton has plenty left to optimize
There’s room to expand use of its camera to offer premium one-on-one coaching, head-to-head racing, group video chat with friends, and
augmented reality filters to make people feel comfortable on screen and take shareable selfies
A wider range of intense but short classes could appeal to overworked professionals who picked Peloton precisely because they don’t have
Novelty could come from celebrity guest instructors, or themed classes for pre-gaming for a night out, fans of a particular artist, or songs
And it should definitely have some iconic sounds like an om or singing bowl chime that play before each class to center you and after to
release you.Most excitingly, the Peloton screen has the potential to be a platform for exercise-controlled gaming and apps
Whether pedaling to escape zombies chasing you or piece together a puzzle, maintaining an output level to keep your cross-hairs locked on an
enemy plane as you dogfight, or making a garden bloom by growing each flower during a different interval, Peloton could evolve riding to be
Apps could offer training simulators for different sports focused on sprints for basketball or marathons for soccer
Or just put Netflix on it! By opening up to outside developers, Peloton could build a moat of extra experiences competitors can’t
match.With the strengths and opportunities of its core product, Peloton is poised to absorb more of your fitness time and money
It’s already branching out with yoga, meditation, lifting, bootcamp, and jazzercise classes you can do standing next to your bike or
without one on its $19 per month app
Its second gadget is a $4300 treadmill.From there it could break into more of the “pushbutton health” business
I categorize these as wellness products and services that rely on convenience instead of your will power
Think delivery health food instead calorie-counting apps that are a chore
My pushbutton regimen includes Peloton, six salads per week dropped off in batches by Thistle, monthly packages of Nomiku vacuum-sealed
meals that RFID scan into its sous vide machine, and a Future remote personal trainer who nags me by text message.It’s easy to get hooked
on the positivityPeloton could easily dive into selling meal kits, personal training, or a wider range of workout clothes to compete with
If it’s the center of your fitness routine, the company could become a gateway to new health products it owns or partners with.I’m
bullish on Peloton because I’m betting people are going to stay busy, lazy, and competitive
It offers the effectiveness of a spin class but with scheduling flexibility
It removes every excuse for staying on the couch
And in an age of visual communication where many seek to share both the journey to and the destination of an Instagrammable body and the
discipline to ge there, Peloton provides conspicuous self-actualization through consumerism
Plus, finishing a ride feels damn good.
