Peloton vs$.$ MIRROR

In this case, we look at two exercise firms that have apps integrated into their exercise equipment. Users are directly connected to their workouts, whether via a built$-$in tablet on a stationary bike or a mirror in a nearly invisible home gym. The COVID$-19$ pandemic changed how fitness centers and health clubs in the United States are perceived. Here are some statistics you may find of interest. The first figure is the total number of memberships at fitness centers and health clubs in the United States as of $2017.$ The second figure shows the cardiovascular fitness equipment market value in $2017-2024($projected$)$ by type of equipment: treadmills, elliptical machines, etc.

$($Source: Statista$)$

$($Source: Statista$)$

$($Sources: Global Market Insights and Statista$)$

$($Sources: Global Market Insights and Statista$)$

Peloton became a popular option for exercise during the COVID$-19$ pandemic when health clubs were forced to close. The product and service combination $$ Exercise as a Service $($EAAS$)$ has become a leader in the home athletic industry. Customers pay for the stationary bike, about $$2,500($free shipping$),$ then pay monthly $($currently $$39)$ to join rides with favorite instructors, music, and locations from the privacy of their home. Terms include $30$ days free trial on the app. This can also be purchased on credit, with zero down and a monthly fee of $$58-$$$111($depending on the bike and other factors$).$ The higher$-$end bike from Peloton is Tread; the cost is $$4,295,$ delivery included. Peloton lets you filter thousands of classes by type, length, time, and music. Users can track their progress with milestones and streaks and get reminders.

Another firm in the EAAS space is MIRROR, the nearly invisible, home, interactive gym. Up to six people can be on a membership. All you need is about two feet of wall space. This can also be used in shared spaces such as apartment common areas, which is a leasing benefit for some. With MIRROR, you can exercise with world$-$class trainers, measure progress, and show off achievements. There are no wait lists or crowded parking lots. Simply, a mirror in your home watching you. The Current pricing is $$42$ per month for $36$ months, which may be less than a gym membership.

Questions

Do you think that a home$-$gym mobile experience is better than going to the actual gym for a workout? Create your reasoning and support your response using the terminology that you have learned in this chapter.

What are some of the ways that these EAAS devices can use mobile marketing to attract and retain customers in a post$-$pandemic environment?

Using the provided membership data and projected equipment financial charts, and considering the experience that home gyms versus actual gyms provides, what would you predict to be an outcome post$-$pandemic?

Can you think of another EAAS product that would serve the needs for exercise and be available in the comfort and privacy of your home? Describe your idea here.