Last week one local venture capitalist firm made a bold prediction about Peloton’s plans for 2021 – they predicted the launch of a Peloton strength hardware device sometime in 2021.
Loop Ventures made a post talking about their predictions for what trends and launches might happen in the tech industry in 2021. One of the companies they looked at was Peloton. They stated that “We believe that Peloton’s next product is most likely a strength machine (similar to Tonal)”. They predicted that Peloton’s announced acquisition of Precor might help with this – “The company’s recent acquisition of Precor will give Peloton the manufacturing capability to scale output and launch new products.”
Our take on this is that reports do indicate that Peloton is likely working on a strength device. They were rumored to have had discussions about acquiring Tempo in April of last year. Peloton’s SVP of Hardware worked at Tonal for 2 years before working at Peloton, and Peloton was also hiring for a “VP of Product Marketing for Peloton Strength” in August of 2020.
The biggest issue with a launch of new hardware like a Peloton strength device (or the Peloton Rower which we’ve previously covered) is likely to be the current order backlog & shipping issues Peloton is facing. It seems likely at this point that Peloton will be forced to focus the majority of their production capacity towards the existing Bike & Treads until orders are caught up. Peloton has made steps to increase capacity (like the new Tonic factory coming online in early 2021), but it will take several weeks/months for production to reach full capacity. This is likely to delay the planned launch of any new hardware, but it’s not clear how long this delay might be.
The team at Loop Ventures also predicted that Peloton “will have a bike available for less than $1,500.” Peloton has mentioned previously that they will eventually have a certified pre-owned bike program, fueled mainly with all the bike trade-ins from people upgrading to new Bike+. These pre-owned bikes would likely be priced around $1,500. However, it’s not clear how many quarters it will take for this program to launch.
As Peloton users await the launch of dedicated strength hardware, our team will be doing some reviews of products that Peloton members can use to supplement their strength training. We have begun hands-on testing with the Tonal, and so far, it appears to complement Peloton workouts well. We’ll be posting a full review in the coming weeks.