Peloton has been on an acquisition spree. Why?

Peloton is acquiring companies in hardware, AI, and wearables to bolster its bike business.


March 30, 2021

Over the past year, Peloton — the connected fitness firm and everyone’s favorite way to get yelled at by bike instructors — has seen its valuation explode nearly 4x to $31B.

To paraphrase Spideman, with great expectations come great responsibilities.

And Peloton is trying to meet those expectations by acquiring startups…

… in the hardware, AI, and wearables spaces

According to Bloomberg, Peloton quietly dropped ~$78m at the end of 2020 and earlier this year on:

  • Aiqudo: AI-powered voice assistant technology.
  • Atlas Wearables: Smartwatch maker that provides workout instruction and tracks fitness levels.
  • Otari: A maker of interactive workout mats.

The tech and engineering talent gives Peloton options in the types of fitness-y services it can upsell from its core bike and treadmill products.

Peloton is spreading its wings

According to Pymnts, the company recently launched:

  • A partnership with Adidas on a performance line of apparel
  • On-demand fitness classes for its bike and the Peloton app

While Peloton just posted its first $1B+ quarter, it is seeing significant shipping delays on its bikes. The company’s December acquisition of fitness equipment maker Precor for $420m is meant to help meet the demand.

At the end of the day, if people can’t get yelled at by the bike instructors, these other acquisitions will be moot.

Join 1.5m+ professionals getting The Hustle daily news brief

Business and tech news in 5 minutes or less

100% free, no ads or spam, unsubscribe anytime

Psst

How'd Bezos build a billion dollar empire?

In 1994, Jeff Bezos discovered a shocking stat: Internet usage grew 2,300% per year.

Data shows where markets are headed.

And that’s why we built Trends — to show you up-and-coming market opportunities about to explode. Interested?

Join us, it's free.

Look, you came to this site because you saw something cool. But here’s the deal. This site is actually a daily email that covers the important news in business, tech, and culture.

So, if you like what you’re reading, give the email a try.

If you don’t like it, unsubscribe any time. Privacy policy.