Raising the price of a Peloton bike increased the company's early sales—and that's part of why the bikes are so expensive

Peloton raised more than $300K in 30 days during its Kickstarter campaign

Peloton ran a Kickstarter campaign in 2013, hoping to raise $250K and ended the campaign with $307K. Peloton sold its first bikes during that campaign for $1.5K. Foley later said that most of the bike purchases came from investors, not necessarily new customers.

Owning a Peloton has become a status symbol

Given the relatively high financial barriers to entry—with its cheapest bikes selling on its website for almost $2K—owning a Peloton has become a status symbol for some, representing the disparity between access to fitness between the upper and lower classes in the US (especially during COVID).

Peloton's founder once said the company 'sells happiness' before a disappointing initial public offering

Ahead of the company's IPO, Peloton founder John Foley told investors that "on the most basic level, Peloton sells happiness." However, the inspirational sentiment didn't stick with investors—the company closed the day of its IPO with stocks trading down 11% from the IPO price. (Some users may experience a paywall.)

Peloton makes most of its money via monthly subscriptions

Peloton has two core revenue streams: the exercise equipment it sells and the company's monthly subscription that gives users access to its class library. More than half of Peloton's revenue comes from the company's core product, the monthly subscription. Its "Peloton App+" membership tier is $28.99 per month.

The controversial 'Peloton Wife' ad from 2019 cost the company more than $1B in market value

The 2019 ad of a man gifting his wife a Peloton exercise bike sparked a wave of controversy, with some calling the ad sexist and fatphobic. The ad's backlash decreased the company's market value by $1.6B.

More than 400 investors turned Peloton down in its initial funding rounds

Peloton founder John Foley said investors rejected the company's initial funding requests because there was no clear indication of what the market for at-home fitness classes looked like. Ultimately, more than 200 angel investors gave the company its first round of cash. (Some users may experience a paywall.)

The COVID-19 pandemic both boosted Peloton's business and shook it up completely

While demand for Peloton's at-home fitness equipment soared during the pandemic, the company didn't necessarily have the infrastructure to support the breakthrough sales. In 2021, Peloton bought Precor—a fitness equipment manufacturing company—to help boost domestic production and decrease a backlog of orders.

The fitness industry has seen a lot of fads—and Peloton might be one of them

Like SoulCycle and Tae Bo, Peloton has struggled to stay at the forefront of the fitness industry. Despite periods of incredibly high interest and high-profile users (like the Obamas), Peloton has lost many users since the pandemic ended—and has struggled to add more. (Some users may experience a paywall.)

How Peloton got moms hooked

Peloton's at-home workout classes were a game-changer for parents, giving them a chance to squeeze a workout in without leaving the house. The community group feature on Peloton created a sense of community that made users incredibly loyal to the brand.

In November 2025, Peloton issued a recall on more than 800,000 bike seats

Years after high-profile recalls on the treadmill due to reported injuries and even a death, Peloton issued another recall on the Peloton Plus bike seat. The company said it received three reports of the seatpost breaking.

Peloton instructors have built expansive personal brands

Outside of teaching Peloton classes, many instructors have amassed large social media followings and brand deals—ranging from modeling for Puma and Adidas to "Dancing With The Stars" appearances. On top of their influencer work, leading instructors at Peloton—like Cody Rigsby, Emma Lovewell, and Robin Arzón—reportedly earn salaries of more than $500K.

The word 'Peloton' comes from the word for the main group of riders in a cycling race

The word itself is French for "ball," but became the inspiration for the word "platoon" in the 17th century to describe a group of soldiers. Now, it's a common cycling term and the main focal point in cycling races.

John Foley was the president of e-commerce at Barnes & Noble before founding Peloton

Foley worked for Barnes & Noble during the company's race against Amazon to dominate the e-reader market (Barnes & Noble had the Nook and Amazon had the Kindle). Foley says his time working for Barnes & Noble helped him learn the business of digital media, which is a core element of Peloton's business.

Prices can still feel high even if inflation is slowing

This is partly because a recent spike in inflation raised prices permanently, so even though the pace of price growth has slowed, prices have still gone up for good.

Roller coasters can cost millions of dollars to make, but they often offer a substantial payoff

Over 6,000 roller coasters are in operation around the world as of 2025, with ongoing demand to build more each year. Despite being costly (some theme parks pay upwards of $50M for these rides), their financiers are able to justify the investment when considering the long-term value of a ride that sticks around for decades with daily streams of visitors.

The global horse market is worth about $400B

In this podcast episode from a new series on horses, Freakonomics explores the market around buying and selling some of the world's top sport horses, and the nebulous forces that make them so valuable.

Wealthy Americans are keeping car dealerships afloat

In the past five years, the share of people buying cars above $50K has increased by several-fold. Car prices have significantly increased overall in recent years.

'Buy one, get one free' is often a clever way to get you to spend more money

One Burger King diner recently saw the price of her $2.16 sandwich rise to $3.19 per sandwich when she used a buy-one-get-one-free (or BOGO) coupon. Naturally, she became suspicious about how good a deal BOGO really is. This video explains why BOGO deals are a way for companies to get you to spend more money, rather than less.

The world of rare and expensive Pokémon cards

The rising value and popularity of Pokémon trading cards is driven by nostalgia, influencer culture, and the launch of Pokémon Go. Fans of the decades-old Japanese game are now seeking to buy rare cards in mint condition for thousands of dollars, sometimes even millions. Learn more about the frenzy to collect these rare cards, and how influencer Logan Paul helped boost market interest in this article.

Why new Rolexes can cost less than used ones

It's reasonable to assume a new Rolex watch—which often sell for thousands of dollars each—would be more expensive than a used version. However, that's increasingly not always the case. This video explains why some used Rolexes cost more than their new counterparts. Watch it here.

One of Apple's first computers sold for $375K at an auction

An operational Apple I, the first model of personal computer made by Apple, sold for $375K at an auction. The machine was first sold in 1976 and has a handwritten serial number by Steve Jobs himself. The auction, provided rare insight into the beginnings of the influential tech company.

The face value of a Super Bowl ticket rose 136% from 2016-26

At Levi’s Stadium, which first hosted the Super Bowl in 2016, face-value lower-bowl end zone seats increased from $1,800 to $4,250 by 2026, while price tiers expanded and the overall cost of attendance skyrocketed.

The most expensive shoe ever sold is from Nike

A prototype of Kanye’s Air Yeezy’s from 2008 sold for $1.8M in 2021. Kanye West wore the shoes at a Grammys performance in 2008, and they became one of the most sought-after samples in sneaker history.

The Wright brothers began as bicycle manufacturers in Dayton, Ohio

In the late 1800s, the duo managed several bike shops in the Dayton, Ohio area, where they would sharpen their teeth in engineering and design. Some of their earliest aviation efforts were funded by their bicycle business and initiated in their bike shops.

How Amazon operates a 'flywheel' business model, a self-reinforcing cycle that drives continuous growth

The 1987 Nintendo video game 'Stadium Events' isn't known for being particularly fun, but its scarcity has made it a highly sought-after item that has sold for up to $35K at auction.

How SpaceX Made Space Affordable

SpaceX has cut launch costs by over 95%—from $54,000 per kilogram to around $2,000—reshaping how we access space.

About 2,000 US babies are born annually without some portion of their limbs, potentially leading to a lifetime of pricey prosthetics.

An initial public offering or 'IPO' is the process of a private company becoming public by putting shares of the company on the stock market for purchase.

The most expensive ad of all time was for Chanel No. 5 perfume and cost roughly $33M to produce in 2004—about $57M in today's dollars.

The price of gas is a composite made up of several different factors, with the federal gas tax making up less than 20% of what drivers pay at the pump.

US consumers collectively owe more than $1T to credit card companies—almost as much as they owe in auto loans.

Netflix profits when you're not watching, and its movies are designed that way—read a detail-rich critical essay exposing lesser-known Netflix takes

In 2019, a laptop loaded with six of the worst malware in history and described as 'an exhibit of historical weaponry' sold for $1.3M.

A pickleball's loud 'pop' sound can reach 120 decibels, which is equivalent to a hammer hitting a nail

Fast-casual restaurant Chili's is experiencing a resurgence, with its parent company recently reporting a nearly 32% increase in sales, thanks to passionate Gen Z fans on TikTok.

Hedge funds, the private investment firms that trade a wide swath of financial assets, make money by imposing steep fees on investors and from the fund's investment performance.

Sears sold DIY house kits starting at $600 in its famous catalog from 1908 through the 1940s, resulting in roughly 10,000 'Sears and Roebuck houses' being built.

Telehealth demand for GLP-1s for weight loss is booming as consumers seek easier access.

Children are now three times more likely to say they want to be a YouTuber when they grow up than an astronaut, with some even attending 'YouTube camps' that teach kids how to create content for the platform.

Up to a million Girl Scouts sell about 200 million cookie boxes every spring, generating $800 million, largely because refusing a child is frowned upon

Before the current East Wing ballroom project, only two White House renovations in the past 100 years cost more than $10M.

Warren Buffett's former professor Benjamin Graham is known as the 'father of value investing,' a strategy in which investors seek to buy stocks trading below their intrinsic worth.

American short story writer Flannery O'Connor raised 40 peacocks, which became potent symbols for her fiction's elegant violence

The Mona Lisa's celebrity status and repeated restorations have obscured what made the painting so revolutionary for its time

In 2009, the nation was gripped by the story of a missing young boy who was believed to be floating over Colorado in a homemade balloon, until it was revealed that he was at home the whole time.

The Beatles' US label rejected the band's first two singles, 'Please Please Me' and 'From Me to You,' with one executive calling the band 'dead in the water.'

Stanford built a Google Maps for the Roman Empire, revealing how much it cost to travel in the ancient world

Some coin denominations have ridges etched on their sides, partly to prevent counterfeiting, in a practice called 'reeding.'

Objects can be 3D printed with light by projecting 2D computerized tomography (CT) scans onto rotating cylinders of resin, which solidify upon exposure.