Peloton has bought startups Aiqudo, Atlas Wearables and Otari in recent months. Respectively, they had developed a digital voice assistant, fitness-focused smartwatches, and an interactive workout mat with a built-in screen.
The New York-based fitness technology company bought Aiqudo Inc. in February, and Atlas Wearables Inc. and Otari late last year. Atlas is developing a smartwatch that supports users in training and measures their performance. Otari has developed an interactive sports mat with an attached screen that users can use to take part in various training sessions.
The most interesting acquisition, however, is likely to be the takeover of Aiqudo. The AI start-up that specializes in voice interaction. What Peloton expects from Aiqudo is obvious: voice interaction with the training equipment is not only a good idea in times of social distancing; Voice interaction is becoming more and more common. A progressive brand like Peloton cannot sensibly do without it. Aiqudo has developed voice assistant for electric cars from manufacturer Byton and has also used its technology in AR headsets.
Peloton said it paid a total of $78.1 million in cash for three companies during the final quarter of 2020. Aiqudo is not included in that amount given the deal closed this year, reports Bloomberg.
Lately, Peloton is increasingly trying to expand its own product range through acquisitions. Also in December, the company acquired Precor, a manufacturer of fitness equipment, for $ 420 million.
In December, Peloton had announced a deal to acquire Precor, a manufacturer of commercial fitness equipment, for $420 million. Word also spread around that same time of Peloton's acquisition of digital fitness platform Peerfit.
If the company wants to achieve its ambitious goals of 2.3 million users in 2021 (it had 1.7 million users in the second quarter), it not only has to broaden its range but also reduce delivery times for spinning bikes and treadmills. Despite increased production capacities, these are still around three months.
In a recent interview with Bloomberg News, Peloton Chief Executive Officer John Foley suggested the company has a pipeline of new products and said a rowing machine and a strength training device are “good guesses” as to what the company is developing.
After the acquisitions became known last week, the Peloton share rose by almost five percent.