Original commentary to press:
While Peloton saw a lift in sales from COVID-19’s closing of gyms, the inspiration behind their success has been Apple, Netflix and Amazon, who all have an extreme focus on user experience. From employing sunk cost fallacy with their high price point – better use it if you’re going to pay so much for it – to the halo effect of celebrities like Leonardo DiCaprio, Richard Branson and Usain Bolt raving about their bikes, Peloton has already engaged consumers in their brand quality.
We should expect to see a rise in their earnings announcement due to the habit-making intention design of the bike, treadmill, and online fitness class offerings though. The simplicity of jumping onto the sleekly designed bike displayed in the living room to begin a workout is as easy as turning on the around-the-clock schedule of live classes. Peleton was designed with the consumer’s user experience in mind: get you engaged and get you into the habit loop. Additional new offerings such as the trade-in program and recent price drops will continue to make the Peloton more accessible to building healthy new habits – especially when the safety and stability of gym businesses during COVID-19 are still in question.
A deep focus on user experience has allowed Peloton to create engaging, beautiful products just like Apple. This edge will continue to be a differentiator for Peloton even as the world slowly reopens.