Peloton's "Relaunch" Is Actually a Warning (And Here's What It Means for Your Business)

Hey team,

So Peloton just did something interesting. And by interesting, I mean slightly desperate.

What happened: They completely revamped everything, hardware, software, and content. Called it a "relaunch." Added swiveling screens, form-tracking cameras, AI personalization (Peloton IQ), acquired a mindfulness app (Breathwrk), partnered with Halle Berry's menopause program, added MSK workouts, and are doubling down on HYROX training plans.

Sounds impressive, right?

Here's the problem: They also raised prices across the board. Hardware, memberships, app subscriptions, and everything got more expensive. And investors weren't buying it. Stock dropped after the announcement. CEO Peter Stern is trying to fight high churn and slowing demand. But here's what I keep thinking about: if you have to call something a "relaunch," you're basically admitting the first launch didn't work.

The Bigger Picture (And Why You Should Care):

Peloton isn't alone. The entire connected fitness space is scrambling:

• Tonal added AI-optimized programs
• iFIT acquired Reform RX to get into Pilates
• Hydrow is scoring workout effectiveness
• Echelon bought FORTË and FlexIt to scale content
• FORME's parent company bought Wattbike
• Vitruvian (a smart strength startup) filed for bankruptcy

Everyone's making the same bet: AI upgrades and premium add-ons will save them. But here's the thing, I don't think it will. At least not the way they're doing it.And honestly? There's a huge lesson here for coaches like us.

What Peloton Is Getting Wrong (And What You Should Get Right):

1. You Can't Fix a Relationship Problem with More Features

Peloton's churn problem isn't a feature problem. It's a connection problem. People buy the bike because they're excited. They use it for 3-6 months. Then life happens, motivation dips, and the $44/month subscription feels like dead weight. The bike becomes an expensive clothes rack. Adding AI personalization and swiveling screens doesn't fix that.

You know what does?

Human connection.

This is actually your biggest advantage as a coach. Peloton can add all the AI they want. But AI can't text someone on a Tuesday morning and say, "Hey, I noticed you skipped the last two workouts. Everything okay?" AI can't remember that your client is dealing with a stressful work project and adjust expectations accordingly. AI can't celebrate with genuine excitement when someone hits a PR.

I see coaches trying to compete with Peloton by adding more tech, more features, more complexity to their programs. Wrong move. Double down on the thing tech can't replicate: genuine human connection and accountability. That's your moat.

One of my clients told me last month, "I've tried every app and program out there. The reason I'm still here is because you actually care whether I show up."

That's it. That's the game.