Business Wars: The Rise and Fall of Peloton | Pedal On | Episode 3

Host: David Brown
Guests: Lauren Thomas (Wall Street Journal), Cassie Ho (Blogilates/Popflex)
Release Date: October 16, 2025

Episode Overview

In this episode of Business Wars, host David Brown investigates Peloton's dramatic rise, the post-pandemic challenges that shook the brand, and its scramble to remain culturally relevant. He’s joined by journalist Lauren Thomas, who traces Peloton’s business struggles, and later by Cassie Ho, the influencer and entrepreneur behind Blogilates and Popflex. Together, they explore shifting consumer habits, the blurred lines between fitness, entertainment, and commerce, and the lessons legacy brands might learn from new-wave fitness empire-builders.

Key Discussion Points & Insights

1. Peloton’s Meteoric Rise and Pandemic Boom

• Early Success: Peloton’s sales surged in 2020, with over a million bikes sold, becoming synonymous with at-home fitness during the COVID-19 lockdowns.
• Media Influence: The brand’s cultural cachet was high, even surfacing in TV parodies and controversial storylines, like Sex and the City’s character heart attack scene (07:05).
  • Lauren Thomas: “In a way, the Peloton brand became synonymous with… staying at home, stay-at-home lifestyle, and being stuck at home. This was something to do, and it was a fun way to exercise.” ([06:30])

2. The Shift to Hybrid Fitness and Peloton’s Stalled Growth

• Return to Gyms: As restrictions lifted, many users returned to in-person classes, leaving expensive Peloton hardware underused ([01:02], [19:22]).
• Hybrid Market Emerges: Lauren notes that both gyms and at-home solutions now coexist, with digital content supplementing traditional memberships ([12:28]).
  • Lauren Thomas: “You saw a lot of consumers do a little bit of both… you realize during COVID, ‘Oh, I need to squeeze in a workout in a pinch.’” ([12:28])

3. Content, Community, and Cult Status

• Peloton as a Content Company: The company’s real innovation was streaming high-energy, instructor-led workouts, not just selling hardware ([10:22]).
• Community Building: Peloton users formed vibrant subcultures, digital forums, and even ranked charismatic instructors online, making them celebrities in their own right.
  • Lauren Thomas: “People that used Peloton products kind of became part of this Peloton lifestyle and brand... It really boiled down to the fact they were able to create this community.” ([10:22]-[11:25])

4. Celebrity Instructors and Brand Risks

• Instructor Stardom: Instructors became influential—publishing books, doing ads, and even TV appearances ([13:55]).
  • Lauren Thomas: “Some of these instructors now, they’ve got like millions of followers… In my mind, they are celebrities.”
• Brand Fragility: There’s risk in depending so much on personalities: “Say some of these instructors start to leave—well, that could… be damaging to Peloton as a brand.” ([13:55]-[14:58])

5. Business Challenges & Attempts at Reinvention

• Demand Declines, Leadership Turnover: As pandemic demand ebbed, overproduction, layoffs, and CEO changes followed ([21:05]).

• Shift to Subscriptions and Tech: Under new leadership, Peloton pivoted from hardware to prioritizing subscriptions and integrating new features such as AI coaching and compatibility with third-party fitness trackers ([22:31], [23:29]).

  • Lauren Thomas: “[Barry McCarthy] was brought in with this mission to really double down on just the subscription aspect… monetizing the business around that.” ([21:05]-[22:31])

• Rumors of Acquisition: Wall Street buzz swirled about Peloton being an acquisition target for giants like Apple or Nike, but new CEO Peter Stern denied plans for a sale ([24:05]-[24:40]).

  • Peter Stern (audio, Bloomberg Tech Summit, June 2025):
    • “I was not hired to sell this company. I was hired to bring this company back to growth, to reinvigorate it. And it is happening… We are a standalone company for years to come.” ([24:35])

6. Seeking Sustainable Growth

• New Revenue Streams: Peloton is pushing into commercial sales (gyms, hotels) and expanding its apparel and accessories to diversify revenue ([27:16]).

  • Lauren Thomas: “…they want that commercial business to grow and they see that business being a growth driver in the future.” ([27:16])

• Cultural Relevance Endures: Despite financial struggles, Peloton maintains a strong brand identity and loyal user base ([28:25]-[30:06]).

  • Lauren Thomas: “They’ve got so many users who are just super loyal to the brand... even as its stock seems to be stagnating, Peloton remains culturally relevant.” ([28:25])

Notable Quotes & Memorable Moments

• On Culture and Community

  • David Brown: “There was this idea Peloton founders had… that someday Peloton would, in a way, replace the gym as a place to go. And Covid became kind of the manifestation of that expectation.” ([07:44])

  • Lauren Thomas: “What they were able to achieve… was they really created this community… what was so inspiring about the company’s rise.” ([10:22])

• On Brand Risk with Instructors

  • Lauren Thomas: “They’ve become celebrities and they have this star status, and I think it’s so smart. It also… is, you know, putting my reporter hat on… there’s a lot of risk in that too… if they leave, that could be damaging to Peloton as a brand.” ([13:55])

• On Cultural Penetration

  • Lauren Thomas: “You walk around New York City and I see people wearing the shirts… They’ve definitely latched on to something and found ways to keep people really engaged.” ([28:39])

Interview with Cassie Ho: Blogilates & Popflex

Cassie Ho’s Story: From YouTube Workouts to Viral Activewear

• Humble Beginnings: Cassie started Blogilates in 2009, filming Pilates for her 40 local students after moving away, never intending to start a brand ([37:01]).

  • Cassie Ho: “I had zero intention of building an audience or starting a brand… Next thing I know… I’m getting thousands of views and hundreds of comments.” ([37:01])

• Earliest Fitness Communities: Chose YouTube just by searching for a “video sharing, upload platform” and quickly built engagement without AdSense or sponsorships ([38:17]).

• Turning Point to Monetization: In 2011, fans asked for Blogilates T-shirts—Cassie realized her ‘screen name’ could be a brand ([39:12]).

• Passion Meets Profession:

  • Despite parental expectations (doctor, lawyer, engineer), Cassie always dreamed of being a fashion designer ([40:10]):
    • “My soul always knew I wanted to design clothing… so in 2016, I wanted to create my own clothing line… and that’s when I started Popflex.” ([40:10]-[40:34])

• Business Model Evolution:

  • Pivoted content into short-form, viral fashion design videos with TikTok’s rise in 2020, often selling out products within hours.
    • “Sometimes these videos will go viral and sell the product within hours.” ([41:55])

• Brand Expansion:

  • Launched Popflex as a D2C brand, and, to increase accessibility, launched an affordable Blogilates line exclusive to Target in 2025 ([42:36]).

Memorable Pop Culture Moment

• Taylor Swift Boost:
  • Taylor Swift wore a Popflex Pirouette Skort on release day for her album, resulting in an immediate sellout.
    • Cassie Ho: “...It is my ultimate dream for Taylor to wear one of my designs… Within minutes, that particular skort… sold out.” ([43:23]-[44:24])

Dealing With Online Negativity & Mental Health

• Stepping Actively Away from Fitness Content: Cassie shares openly about toxic negativity in fitness spaces online, especially attacks on her body image, and why she took a break from creating workout videos ([44:53]).

  • “Putting myself out there just to be attacked for other people’s monetization was not healthy… I never got a negative comment about my body again [after switching to design videos].” ([44:57])

• On Returning to Fitness Content:

  • She’s open to it “when the heart says it’s time,” recognizing the need to protect her mental health ([46:26]).

The Power of Community and Future Ambitions

• Community Focus: Any future Popflex retail presence would have a community and experiential approach—“a place for community building… a third space” ([47:42]).
• Gratitude and Growth:
  • “I never thought that putting up a pilates video on YouTube would lead to… Taylor Swift wearing one of my designs… But as a young child, I always knew that I was going to do something really cool one day.” ([47:02])

Segment Timestamps

| Timestamp | Segment/Key Topic | |-----------|--------------------------------------------------------------| | 00:07 | Peloton’s pandemic boom and hype; opening context | | 05:08 | Lauren Thomas interview begins – Peloton’s IPO & public entry| | 07:05 | Media’s impact (Sex & the City, SNL skits) | | 10:22 | Content innovation, building community | | 13:55 | Instructor stardom and brand risk | | 19:22 | Lauren’s own Peloton experience | | 21:05 | Post-pandemic decline – CEO changes, business struggles | | 23:29 | New features, AI coaching, tech pivots | | 24:35 | CEO Peter Stern on staying independent (Bloomberg audio) | | 27:16 | New business lines: commercial sales, accessories, apparel | | 28:25 | Peloton’s culture and user loyalty | | 36:49 | Cassie Ho (Blogilates/Popflex) interview begins | | 37:01 | Building a YouTube community by accident | | 39:12 | First move to merchandise and brand realization | | 40:10 | Parental pressure, pursuing fashion design | | 41:55 | Content pivot to short-form, viral growth | | 42:36 | Popflex vs. Blogilates—brand evolution and Target launch | | 43:23 | Taylor Swift skort moment | | 44:53 | Online negativity in fitness, pausing workout content | | 46:26 | Openness to return, mental health reflections | | 47:42 | Future vision—community and retail space |