Offices as a new source of income
Peloton shares could get a new round of growth as the fitness company, which benefited from the COVID-19 pandemic, now intends to turn a return to offices into its advantage rather than an obstacle.
Peloton (PTON) shares are up more than 400% in 2020, but have fallen 28.7% since the start of 2021, as investors feared demand for online fitness and home exercisers would fall as people return to offices, gyms and fitness studios, spending less time at home.
However, Peloton today announced the launch of a major new segment in its business, namely sales as part of its Peloton Corporate Wellness programme for corporate clients.
Peloton has presented its product as a great benefit to employers who are looking to improve the productivity of their employees by worrying about their physical and emotional health.
Under this programme, Peloton corporate customers will be able to offer employees a subsidised subscription to online exercise classes or discounts on the company's fitness equipment. In doing so, the interface will improve corporate culture and create a "community of interest" and increase employees' motivation to achieve fitness goals.
Peloton will also help corporate partners to equip office space for workouts.
In its press release, Peloton said that in a survey of 1,400 of its customers in the US, UK, Canada and Germany in February 2021:
- 77% reported feeling happier,
- 65% felt their mental health had improved,
- 83% felt more successful,
- 64% felt more productive at work.
Peloton also cited positive feedback on testing the programme from reputable companies such as electronics manufacturer Samsung, software giant SAP, UK telecommunications company Sky and, who were the first clients of the Peloton Corporate Wellness programme.
Peloton did not disclose the financial terms of its corporate contracts.
Peloton President William Lynch said Peloton began investing in the corporate wellness platform about a year ago as it began receiving requests from companies for partnerships.
Lynch said: "With the return to the office and the realisation that companies need healthy employees especially after the pandemic we have seen an incredible demand for the platform".