Peloton (NASDAQ: PTON) is looking to expand and sell to more commercial customers as it continues to grow. The company revealed it has created a platform for hospitality industry customers to purchase connected fitness equipment as well as Precor products online.
The exercise equipment company recently concluded its USD420 million acquisition of Precor, which in turn gave it manufacturing capacity within the US. Furthermore, the deal provided Peloton with Precor’s treadmills, cycles, ellipticals, rowers and other strength training equipment, which are usually found in commercial environments such as gyms, colleges and hotels.
“This is really a B2B play for us,” said Brad Olson, Peloton’s chief business officer. “We’ve been selling Peloton bikes into hotels and resorts for years. … But this is really the culmination and one of the big elements of the deal rationale of why we purchased Precor.”
The company is set to partner up with hotels to bring exercise cycles into requested rooms.
“We know that [having] our bikes in hotels and resorts around the world presents a great opportunity for lead-generation awareness of the Peloton product and content,” Olson said.
Nevertheless, Peloton disclosed that the majority of its revenue still stems from people who buy machines for their at-home gyms. Though the company said it would like to increase its membership base amid commercial partners as covid-19 restrictions begin to ease and people venture outside their homes.
Peloton shares have tumbled 32% throughout the year and it has a current market value of USD31 Billion.