Peloton Launches B2B Service, Eyes Hospitality & Corporate Wellness
As Peloton pushes to be more than an at-home fitness company, it’s looking to meet consumers on vacation or at work
Peloton has introduced Peloton for Business, a B2B portfolio of well-being solutions for clients in hospitality, corporate wellness, multi-family residential, education, healthcare, gyms and community wellness.
The announcement of the B2B segment comes just before Peloton’s Q4 and full-year fiscal 2023 results, which will be released on August 23.
The full-service offering includes equipment and content-based solutions to continue Peloton’s mission to empower wellness enthusiasts for “anyone, anywhere” fitness. Peloton says the newly launched division strengthens its existing B2B offerings and points to its ongoing success, such as over 7.5 million Bike rides taken in commercial settings.
The connected fitness company also reports high retention rates with its Peloton Corporate Wellness benefit, with over 93% of clients renewing year over year.
To further strengthen its B2B segment, Peloton appointed Greg Hybl senior vice president and general manager of its Peloton for Business unit. Hybl, who comes to the connected fitness company from American Express, has 20 years of experience in strategic partnership, commercial and business development.
“I’m thrilled to be joining Peloton at such a pivotal time in the development of its B2B strategy,” Hybl. said “Our goal is to be a solution-oriented partner that provides customizable options for each client’s unique needs, regardless of a company’s size. By offering both holistic and individualized solutions, we can now widen our client base to include small and mid-sized organizations in addition to the larger enterprise businesses we currently serve.”
Peloton for Business includes the following:
- Commercial Bike: Access to a Peloton Bike that allows an unlimited number of users to ride at no charge to them, in hotels, multi-family residential gyms, corporate office gyms, campus recreation centers and community wellness gyms.
- Employee Benefit: Access to the Peloton App, preferred pricing on Peloton equipment, unique corporate engagement experiences and an inclusive community, all through one employee benefit.
- Partner Offers: Access to enterprise-level partnerships that deliver exclusive programming and offers for the audiences of partner brands and organizations.
Corporate Wellness Is on the Rise
Peloton’s continued push into corporate wellness is right on time, as companies are taking note of the importance of offering such programs to employees. In addition to positive benefits such as employee retention and reducing absenteeism, employer-sponsored wellness programs can increase a company’s bottom line.
Peloton says its B2B corporate clients represent a variety of industries, such as Sequoia, a benefits platform and advisory services company that just added Peloton to its invite-only network of health and wellness providers. It’s a move that sees hundreds of Sequoia clients having the chance to offer Peloton classes and corporate engagement experiences.
Volvo employees in the U.S. are also able to benefit from Peloton after the luxury vehicle manufacturer partnered with the connected fitness company. Aside from putting Bikes in Volvo fitness centers, employees can access Peloton’s app, the all-access membership and discounts on equipment like Bike, Bike+, Tread and Guide.
Dropbox is also using the power of Peloton to serve its fully remote employees, who, like Volvo, can also gain access to the app, membership and hardware discounts.
As for tourism and hospitality, Peloton has seen continued success with its partnership with Hilton, which it forged last year. The collaboration makes Hilton the first hospitality brand to feature Peloton Bikes at its U.S. locations. The companies recently expanded their partnership to include Puerto Rico, Germany, the U.K. and participating properties in Canada.
This spring, Peloton CEO Barry McCarthy indicated that the company would lean further into the hospitality sector, referring to the push as a “fruitful source of consumer demand” for Peloton.
Peloton is also building its community reach, recently partnering with YMCAs in San Antonio and Chicago for a pilot program to promote increased access to fitness through its content and community events.
The push into corporate wellness and other B2B segments comes as Peloton recently rebranded from a fitness hardware-first company to one that relies on its content and app to reach new consumers, widening its reach to attract a younger audience.
While McCarthy hasn’t diminished or discounted the hardware Peloton has created, he’s long believed that content is king.
“Content is kind of the golden goose,” McCarthy told investors during Peloton’s Q3 earnings call. “Is the Bike a great experience from a hardware perspective and better than things that had come before it? Absolutely is. But the magic and the glue that binds the community with almost religious fervor amongst the members is the content and the instructors.”
