Peloton: The Mr. Big Heart Attack, a Tread+ Recall and a $95 Used-Bike Fee

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Barnes & Noble executive John Foley pitched colleague Tom Cortese on a connected spin bike, and they founded Peloton Interactive in early 2012. A 2013 Kickstarter asked $1,500 for an early bike, the first tablet-connected model shipped in 2014 alongside showrooms in high-end malls, and the September 2019 IPO raised over $1 billion at an $8.1 billion valuation. The National Music Publishers Association sued in March 2019 over unlicensed music in classes, with claimed damages climbing from $150 million to $300 million before a settlement in early 2020. The November 2019 holiday ad The Gift That Gives Back drew ridicule and a Ryan Reynolds gin parody starring the same actress, Monica Ruiz. Then pandemic gym closures pushed Peloton to a $50 billion valuation by January 2021.

Demand broke the supply chain: in late 2020 Peloton spent $100 million on shipping, including chartered 747s. In May 2021 the Consumer Product Safety Commission warned against the Tread+ after a child died and nearly 40 injuries were reported; Peloton first pushed back, then recalled the Tread and Tread+ on May 5, 2021. In December 2021 the character Mr. Big died after a Peloton ride on And Just Like That, and the stock fell 11.3 percent the next day. Foley stepped down in early 2022 as 2,800 jobs were cut. CEO Barry McCarthy, a Spotify and Netflix veteran, outsourced manufacturing and sold on Amazon before resigning in 2024; former Apple executive Peter Stern took over in January 2025.

• Rival Flywheel's Project Magnum copied Peloton technology; Flywheel settled in February 2020 and shut its home service, and Peloton offered its users free refurbished bikes.
• Peloton's fast response ad with actor Chris Noth was pulled after sexual assault allegations against him surfaced.
• In May 2023 Peloton recalled 2.2 million bikes because seat posts could snap during rides.
• An August 2024 rule added a one-time $95 activation fee for secondhand equipment.
• An April 2026 deal put more than 1,400 Peloton classes inside the Spotify app.