When a company has multiple ways to make money, investors often say that the company has optionality. Peloton (NASDAQ:PTON) the workout-at-home company, has recently announced its getting into corporate wellness. This could potentially turn into a massive growth opportunity for the brand. On a Motley Fool Live episode recorded on June 30, Fool contributors Brian Feroldi and Brian Stoffel talk about the early results from the initiative.
Brian Stoffel: I'm going to move on to a much smaller company, which is Peloton. Peloton's an interesting company because it's one that when it went public, I thought it was one of the most ridiculous things in the world. Like $2500 for a machine and that's it. But the more I learned about it, the more I realized that there's a lot happening here at this company to like. I mean, they even have an app that you can pay $13 a month for, and you don't need the bike or the treadmill. In a lot of ways, I mean, they're just another fitness app, but one that is very popular.
Now they came out with an announcement over the last week about their, it's called corporate wellness. I'm just going to read from it, and then I will tell you a little bit about it. It says, "Organizations can offer subsidized access to Peloton digital and all access memberships, as well as exclusive benefits on connected fitness products." Those are those bikes and those treadmills. "Corporate wellness partners will receive access to tailored features to help drive engagement, reduce workload, measure impact all over platform. Each partnership will benefit from Peloton brand and marketing. Knowledge of member engagement..." Yada yada yada.
They told us that this has been going on for a short period of time. We find out that Wayfair, Samsung, SAP, Accenture, they're all part of this. They've all started and piloted this. During the first three months, I just want to show you, they've shown us a little bit of what's going on with the program. Thus far, I mean, the results look pretty impressive.
We have to see what an uptake there is. But they say that out of those customers, they surveyed them after three months, and 87 percent said that this partnership with Peloton help them meet their fitness goals, 65 percent said their mental health had improved, 64 percent said they were more productive at work. I mean, in a way if you can afford it as a company, it seems like a no-brainer. For Peloton, it really speaks to the optionality that the company has.
Brian Feroldi: Isn't the real question? Can you afford not to work with Peloton Brian?
Brian Stoffel: I mean, I haven't worked for a company where I go into the job and so long that I wouldn't even know.
Brian Feroldi: I love that. To me, that shows the optionality embedded in this company.