Peloton

Context

Over the past two decades, the fitness industry has shifted under changing consumer behavior, rising urban real-estate costs, and the growing influence of digital technology. These forces reflect a period of societal recalibration in which long-standing assumptions about how consumers access services and evaluate value were renegotiated. Gym memberships historically operated as bundled service models, selling access to weights, cardio equipment, group classes, saunas, and personal training.

Most members, however, engaged with only a small subset of the bundle, typically concentrating on a single activity. Because the underlying product — access to equipment and space — was largely undifferentiated, full-service gyms were positioned as…