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Man discovers sticking an ipad on exercise bike is not actually a business strategy

submitted by Sheitstrom to whatever 2.6 yearsOct 11, 2022 11:32:46 ago (+17/-0)     (www.zerohedge.com)

https://www.zerohedge.com/markets/peloton-co-founder-hit-repeated-margin-calls-goldman-sachs-stock-crashed



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[ - ] SmokeyMeadow 4 points 2.6 yearsOct 11, 2022 12:53:05 ago (+4/-0)

Hmm, an exercise bike company whose stock peaked during 2020. Obviously they profited heavily from lockdowns and the pandemic scare tactics that kept everyone inside for a fucking year. Their response, instead of using that meteoric success to bolster the Peloton brand, was to paywall all their shitty bikes and make people pony up for a subscription service to use the product they already purchased. They can rot in hell.

[ - ] Crackinjokes 2 points 2.6 yearsOct 11, 2022 13:35:30 ago (+2/-0)

Yes. He was very stupid when they could have used all that huge Capital credit to expand into other markets or bought some hard assets that would not have been subject to stock market vagaries and trends. Nonetheless the guy probably never imagined he'd ever be so rich and was probably drinking his own Kool-Aid that the stock would never fall.

[ - ] SmokeyMeadow 4 points 2.6 yearsOct 11, 2022 13:53:34 ago (+4/-0)

They could have transitioned into selling real bikes and sold them to a loyal base of customers. It would have been the golden goose. What a colossal idiot.

[ - ] bonghits4jeebus 3 points 2.6 yearsOct 11, 2022 12:54:50 ago (+3/-0)

His legacy: Every fitness device has an iPad and a subscription attached to it

IDK if you can make money that way, but you can really jam some thumbs up people's buttholes, as it were

[ - ] bobdole9 1 point 2.6 yearsOct 11, 2022 13:45:51 ago (+1/-0)

Not certain when they decided "you must be a subscriber", but I bet it's when the stock started tanking.

[ - ] bonghits4jeebus 1 point 2.6 yearsOct 11, 2022 15:39:38 ago (+1/-0)

The subs, to the extent that people buy them, are free money to them, and maybe the only money they will make. The margins on the machines, thin at best, aren't a recurring revenue model. You might be able to make honest money selling an honest product, but that's not what they're doing, and it wouldn't drive Wall Street valuation in any case. That valuation is based on hooking people to subscriptions, like Netflix.

[ - ] binrobinrro 1 point 2.6 yearsOct 12, 2022 00:26:29 ago (+1/-0)

I have an Exerwork Desk https://www.amazon.com/Exerpeutic-Exerwork-Adjustable-Exercise-Bluetooth/dp/B07S6CSBFL

that I found for free on Craigslist. 24 built-in programs, bluetooths to my phone, and I can set my laptop on its desk and cycle along a canal in Italy, or a rocky desert trail in Arizona (on youtube). Or just watch a movie. No subscription needed.

[ - ] totes_magotes 1 point 2.6 yearsOct 11, 2022 19:17:10 ago (+1/-0)

The company was probably shorted to death as soon as the first bad decision hit the public eye.

[ - ] i_scream_trucks 0 points 2.6 yearsOct 11, 2022 23:16:17 ago (+0/-0)

Man discovers sticking an ipad on exercise bike is not actually a business strategy

horseshit. there is an entire industry built around overpriced excercise equipment with useless shit like screens.

[ - ] NuckFiggers 0 points 2.6 yearsOct 11, 2022 13:54:10 ago (+0/-0)

Trends that appeal to women always eventually bottom out, especially exercise (and diet) trends. Think of how many ridiculous exercise trends for women that have come and mostly gone. Zumba, Pilates, etc. I spend every day in the gym and I've seen dozens of them come and go. If you're going to invest get the fuck out as soon as you've made money.