Peloton Announces Corporate Wellness Plan As More People Head Back to Work

By Emma Nitzsche 

On Tuesday, Peloton launched a corporate wellness program targeting employees headed back into the office.

Businesses that sign up with Peloton can offer employees discounted prices on fitness equipment and digital workout memberships. So far, several companies have joined the program, including Samsung, SAP, Wayfair, and Sky.

The perk could help companies lure employees back to the office after a year of remote work or attract new talent. In addition to cardio exercises, Peloton offers yoga and meditation classes to help potential employees deal with the stresses of the workplace.

Demand for Peloton’s equipment and memberships surged during the pandemic, fueling more than 400% runup in the company’s stock. In a year, Peloton signed on nearly 5.2 million members for their online fitness classes. The fitness company’s revenue doubled $1.8 billion from $915 million a year earlier.

But Peloton’s income stream is limited. Shares are down 29% because investors worry fitness trends will change when people return to the workplace. Most Peloton customers buy a cardio machine once and then pay a monthly membership fee to access online workouts. Peloton is worried employees will ditch their home bikes for a gym membership. By incentivizing companies to partner with them, Peloton hopes to grow its client base and avoid post-pandemic membership leakage.

The fitness company said corporations involved in the program would have access to tailored features like team tagging and group exercises. Peloton hopes its corporate clients will use the customized exercises to foster accountability and bonding within colleagues.

“Peloton Corporate Wellness is the latest step to making the award-winning Peloton experience more accessible. Over the years, we’ve worked hard to help our members achieve healthier and happier lifestyles,” said William Lynch, the President of Peloton.

In addition to the discounted fitness deals, Peloton will assist corporate partners with outfitting office workout spaces.

Despite the boom in 2020, the last year has not been entirely smooth for Peloton. In May, Peloton recalled a few of its treadmills over safety concerns. Additionally, a software security company said it exposed a vulnerability in one of the bikes. Hackers could install malware through a USB port and potentially spy on riders. Peloton quickly resolved the flaw, and riders can feel safe using their at-home equipment.