David J Miller - Sweating Together

ADVANCE PRAISE

The Peloton story is a fascinating tale of entrepreneurship, creative destruction, and innovation. Like Amazon or Netflix, Uber or Sonos before, it almost always takes an outsider to envision an entirely new way of serving customers and disrupt a well-entrenched industry. That is exactly what Georgia Tech alums John Foley, Yony Feng, and their co-founders did, and I cant think of better person to tell this story than David Miller, whos been studying and teaching entrepreneurship for years and who for years tried to sell me on this concept until he finally succeeded!

DR. NGEL CABRERA, president, Georgia Institute of Technology

In Sweating Together, David Miller takes a deep dive inside the phenomenon that is Peloton, one of the most fascinating and unexpected startup success stories of our time. He shows how Peloton is a combination of technology startup and wellness brand, whose success is predicated on a community of loyal users. A must-read for entrepreneurs, venture capitalists, fitness gurus, and anyone who wants to understand and navigate the exploding marketand worldof technology, fitness, and wellness.

RICHARD FLORIDA, author of The Rise of the Creative Class

Peloton has reset the recreation landscape, and David Miller tells us how and why the founders were able to make Peloton something much bigger than an iPad connected to a stationary bike. Miller also tells his own story of his journey from Peloton skeptic to addict so we can understand the brands hold on the consumers mindset and why he thinks Peloton could become one of the worlds largest companies.

SETH GOLDMAN, co-founder of Honest Tea, Eat the Change, and PLNT Burger and board chair of Beyond Meat

David Miller delivers a first-of-its-kind deep dive into one of the worlds most fascinating companies, documenting his own journey from skeptical academic to self-described Peloton addict along the way. Sweating Together details how a company became a movement and why Peloton has changed everythingfrom working out in the basement to creating a community-driven megabrand.

JASON KELLY, author of Sweat Equity: Inside the New Economy of Mind and Body

In Sweating Together, Dr. Miller powerfully captures the benefits of social connections in physical exercise. While he highlights the successes of Peloton through the lens of entrepreneurship, its clear that what emerged from this successful company is a large community of passionate and dedicated Peloton enthusiasts. A powerful lesson from this book is the importance of social support in our physical activities. Sweating Together is a brilliant case study of leadership, entrepreneurship, well-being, and innovation.

NANCE LUCAS, PhD, executive director and chief well-being officer, Center for the Advancement of Well-Being, George Mason University

David combines his passion for and understanding of entrepreneurship and innovation and his own personal journey to illustrate key features that have driven the remarkable growth of a highly adaptive and entrepreneurial company, Peloton. Pelotons journey, with its relentless focus on the customer, is an excellent case study providing key insights for any innovator looking to make a meaningful difference in the lives of the people and communities they serve.

SARAH E. NUTTER, PhD, Edward Maletis dean and professor of accounting, University of Oregon, Lundquist College of Business

David J. Miller has colorfully and carefully captured the spirit of the Peloton brand, its founders, and its impact on how humans across the world consume their workouts. Expect a deep, meticulous dive into the behind-the-scenes moments that will surprise and delight Peloton lovers and skeptics alike, whether theyre interested in the sweat or the sweat equity that goes into creating a globally-adored, billion-dollar business.

LIZ PLOSSER, editor-in-chief, Womens Health and author of Own Your Morning: Reset Your A.M. Routine to Unlock Your Potential

David Miller, a leading entrepreneurship professor with a passion for Peloton, was practically built in a lab to write this book. In Sweating Together, he combines his love of the brand with his knowledge of branding to create a riveting look at the wild and rapid rise of Peloton. Whether youre part of the Peloton phenomenon or perplexed by it, this book is a must-read.

CRYSTAL AND TOM OKEEFE, hosts of The Clip Out

SWEATING TOGETHER

HOW PELOTON BUILT A BILLION DOLLAR VENTURE AND CREATED COMMUNITY IN A DIGITAL WORLD

DAVID J. MILLER, PhD

#ChicagoBorn

Copyright 2022 by David J. Miller, PhD

All rights reserved. No part of this book may be used or reproduced in any manner without written permission from the publisher, except in the context of reviews.

Printed in the United States.

Ideapress Publishing | www.ideapresspublishing.com

Cover Design: Tim Green, Faceout Studios

Interior Design: Jessica Angerstein

Cataloging-in-Publication Data is on file with the Library of Congress.

ISBN: 978-1-94085-897-5

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To Emily, Levi, Sari, and Lincoln for supporting me through this evolving ride

2012

• Peloton founded
• $400,000 seed round of funding
• $3.5 million Series A Fund Raise

2013

• First prototype bike designed and created
• Kickstarter Campaign raised a little over $300,000, sells 200 bikes
• First Instructor Hired -Jennifer Schreiber Sherman (JSS)
• First Retail Showroom -Short Hills Mall in New Jersey

2014

• Generation 1 bike released and delivered
• $10.5 million Series B Fund Raise

2015

• Apple iOS App launch
• $30 million Series C Fund Raise
• $75 million Series D Fund Raise

2016

• 35,000 Connected Fitness Subscribers (midyear)
• Commercial/Hotel bikes Announced at Consumer Electronics Show (CES); later discontinued
• Palo Alto Showroom opens
• Author clips in for the first time

2017

• Commercial bike announced at CES (later discontinued)
• Denver showroom opens in Cherry Creek Shopping Center
• 108,000 Connected Fitness Subscriptions (midyear)
• $325 million Series E Fund Raise

2018

• Tread (later known as Tread+) Unveiled at CES, deliveries begin in fall
• Robin Arzn streams classes from the Winter Olympics in Pyeongchang, South Korea
• Tread Studio Opens in NYC (will be used for yoga also)
• Outdoor Runs and Walks -app renamed Peloton Digital
• 245,000 Connected Fitness Subscriptions (midyear)