DevNull127 writes: Let me get this straight. Peloton’s major product is a stationary bicycle costing over $2,000 with a built-in touchscreen for streaming train lessons. (“A entrance dealing with digicam and microphone imply you possibly can work together with pals and encourage each other whilst you experience,” defined the Kickstarter marketing campaign which helped launch the corporate in 2013, with 297 backers pledging $307,332.) Quickly after they went public final summer season, Bloomberg started calling them “the unprofitable health firm whose inventory has been skidding,” including “The corporate is engaged on a brand new treadmill that may price lower than the present $4,000 mannequin, in addition to a rowing machine.”
Final March they have been additionally sued for $150 million for utilizing music in exercise movies with out correct licensing, based on the Verge — which notes that the corporate was then valued at $Four billion. After which this week Vice reported on what occurred to considered one of their opponents.
“Flywheel supplied each in-studio and in-home stationary bike lessons just like Peloton. Peloton sued Flywheel for expertise theft, claiming Flywheel’s in-home bikes have been too just like Peloton’s. Flywheel settled out of court docket and, as a part of that settlement, it is pointing individuals to Peloton who’s promising to exchange the $2,000 Flywheel bikes with refurbished Pelotons… When Peloton delivers these substitute bikes, it will additionally haul away the previous Flywheels.”
The Verge studies that one Flywheel buyer who’d been having fun with her bike since 2017 “acquired an electronic mail from Peloton, not Flywheel, informing her that her $1,999 bike would now not operate by the top of subsequent month.”
“It wasn’t like Flywheel gave us any choice if you happen to determine to not take the Peloton,” she says. “Mainly it was like: take it or lose your cash. They did not even try to repair it with their loyal riders. It felt like a sting.”
Learn extra of this story at Slashdot.