With gyms closed and social distancing restrictions putting a damper on many people’s routines during the spring and summer, alternative forms of exercise have provided options for those looking to stay in shape. Peloton, the maker of stationary exercise bikes and complimentary exercise media, is seeing an astronomical surge in sales for 2020.
According to estimates from JPMorgan, Peloton is set to make roughly $1.8 billion in sales for 2020. That’s about a 100 percent increase from the $910 million in sales the company made in 2019, which itself is another doubling of annual sales for the company from 2018.
Peloton sales come from two main sources: their stationary equipment, which usually sells for north of $2,000, and their $39 complimentary subscription service, which provides video streams of cycling classes, yoga instruction, strength training, and other exercise sessions directly to the Peloton bike.
In response to the pandemic and increased brand awareness, Peloton is lowering prices on their $2,200 base model bikes by 16 percent. The company hopes to continue growing their subscription service base of customers, which has grown from around 550,000 at the beginning of 2020 to over 880,000 as of the third quarter of this year.