Real-life resilience - Peloton

Remember that time when almost everyone had a Peloton? Or at least wanted one? It was the height of COVID.

Gyms were closed, people stuck at home, and everyone wanted to stay as healthy. Peloton offered a fitness solution that was full of glitz and style - a sleek bike, celebrity-like instructors, community, and a convenient way to stay healthy. Sales surged, revenue doubled, and waitlists became excruciatingly long. Peloton became a movement and a household name.

But then, the world reopened.

When restrictions eventually lifted and people returned to their old routines, Peloton hit a wall. Demand plummeted. The company had overinvested in production, ramping up manufacturing and supply chains to match a surge that turned out to be temporary. They were left with warehouses full of unsold bikes and treadmills. Their stock price collapsed. Layoffs followed and the CEO stepped down.

Peloton was founded in 2012 by John Foley. As a busy executive working long hours, he found it hard to attend spin studio workouts and imagined a high-quality bike paired with live-streamed, energetic classes. With a successful Kickstarter in 2013, Peloton was born.

The company quickly gained traction by combining hardware, software, and content into a high-quality, subscription-based experience. Driven by the innovation of blending convenience with connection, Peloton built a lifestyle brand focused on motivation, performance, and community from the very beginning.

However, since COVID, Peloton has become a case study in overextension, and their stock price dropped from a high of $162 down to as low as $2.70. The golden era was indeed over.

But that’s not the end of the story.

You see, Peloton didn’t fold. They regrouped. Under new leadership, they took a hard look at their operations and began cutting costs. They shifted from hardware to a focus on content and digital subscription services. They experimented with new business models, like equipment rentals and app-only memberships, making their offering more accessible.

It hasn't been glamorous, nor easy. But resilience rarely is. It’s the gritty work of letting go of what no longer serves us, learning from failure, and starting again with humility and clarity.

They began doing the basics better, leaning into what had always set them apart: the experience, the community, and the instructors.

One of Peloton’s smartest long-term plays has been allowing, and even encouraging, their instructors to build personal brands. It turns out that one of the main reasons people still love Peloton is because of the fitness coaches - they aren’t just instructors, they’re entertainers, motivators, storytellers, and in some cases, cultural figures.

A few examples include Cody Rigsby and Tunde Oyeneyin, who have their own personalities (and large followings) beyond Peloton. Some brands shy away from empowering their people to build their own brands, but Peloton understands that when you support individuals in being fully themselves, the brand benefits.

This has started to pay off in the hard times. As demand for hardware dipped, it has been the instructors (and the communities they cultivated) that have kept people coming back. People aren’t just showing up for a workout; they’re showing up for someone. They are seen, inspired, and connected.

Lessons in resilience

With the stock at $6.82 right now, Peloton is still far from the great heights it once was, but it’s also more than double where it was from the lowest lows. I think Peloton's story can help demonstrate how we navigate change and challenge in our own lives.

1. The obstacle is the way. All the way back in 2012, there was a problem that needed solving. Rather than bitch and moan about not being able to attend classes with a busy schedule, John Foley saw it as an opportunity to create something new. Just having that mindset is a beautiful demonstration that we can always find a new way forward.

2. Adapt, don’t anchor. Peloton has never been afraid to pivot. It’s been their survival mechanism, and also their thriving mechanism…depending on the hour. In our lives, we can always ask what we are holding onto that might no longer serve us. This is so important in today’s world of constant change. My quick tip on this is to do one thing differently today - make it small or large (doesn’t matter), but make it different. Let’s try it!

3. Invest in people. Peloton’s investment in instructors and their personal brands is a marketing strategy, and also a resilience strategy. At work and in life, the relationships we build, and the people we connect with, become our strongest foundation. Community will get us through most things, and smart businesses know how to tap into the strengths of their people. Who can we connect with this week to give us a resilience jolt?

4. Keep showing up. No single solution has pulled Peloton out of its slump - it has been an iterative progress. The same is true for us. Resilience isn’t one grand gesture, but rather the consistent tapping into the tools we have. Some days it’s mindfulness or breathing, other days it might be a new perspective. Regardless, it’s having that extensive tool box available to us, and showing up every day to use one or two of them.

Peloton isn’t the same company it was in 2020. But in some ways, it's stronger. Not because it avoided difficulty, but because it survived through adaptation, community, and reconnecting to what really mattered.

That’s resilience. And it’s not just something brands need. It’s something we all need.

Until next time friends, stay resilient.

Carre @ Resilient Minds