Flywheel admits it copied Peloton, will shut down virtual classes
Flywheel At Home customers will get Peloton-branded bikes
KB Advisory Group LLC Kristin Bentz discusses her outlook for Peloton stock.
Flywheel is pumping the brakes on its virtual fitness classes after admitting it illegally ripped off-spin bike competitor Peloton, the company said in an email to riders Wednesday.
The home exercise company settled with Peloton over patent infringement earlier this month and will stop offering at-home classes on March 1, with on-demand classes riding out the rest of the month through March 27. Flywheel said it would continue offering its in-studio cycling classes.
Flywheel ended all of its virtual classes giving customers a month to swap their bikes for Peloton.
Instead, Flywheel customers will now have the option to trade in their At Home Flywheel bikes for a refurbished Peloton one. Flywheel virtual class customers and subscribers at home will have their accounts terminated automatically, Flywheel said.
"We understand your disappointment at this news, but we have partnered with Peloton to provide an exclusive offer for you to enjoy their world-class At Home product," Flywheel said in the email. "The last possible day you may be billed for Flywheel At Home is today."
CYCLING STUDIOS SWEAT COMPETITION FROM PELOTON AND HOME FITNESS PROGRAMS
Peloton sued Flywheel in 2018 claiming it copied its stationary fitness bike and its concept of streaming cycling classes at home, particularly displaying workout metrics on screen and allowing live riders to compete with other users as they can with Peloton. Flywheel admitted in the settlement that it infringed on Peloton's intellectual property, according to The Verge.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| PTON | PELOTON INTERACTIVE INC. | 7.51 | +0.26 | +3.59% |
Flywheel did not immediately return FOX Business' requests for comment. Flywheel Chief Financial Officer Jeffrey Naumowitz said in the settlement:
"Flywheel admits that Flyhweel's Fly Anywhere Bike and associated services infringe the Peloton Patents and alleged by Peloton [and] that Flywheel copied elements of the Peloton bike in developing its Fly anywhere bike. As such, and as part of the settlement resolving this dispute, Flywheel agrees that within 60 days it will stop infringing Peloton's patented technology."
Fans expressed sadness on social media after learning their Flywheel At Home subscription would be terminated.
"Well, this is sad news for us At Home riders," one customer Tweeted.
"In order to make sure that Flywheel Home Bike owners can continue to get the benefits of indoor cycling at home, we have worked with Flywheel to create an exclusive opportunity for them to join the Peloton community by trading in their Flywheel Home Bike for a like-new Peloton Bike at no cost to them," a Peleton spokesperson said in a statement emailed to FOX Business. "We look forward to welcoming these new members into the Peloton family."
If Flywheel users like their new Peloton bikes, they can activate a new Peloton membership, which will be auto-billed at $39 per month, plus any additional taxes, Peloton told users in an email. Customers will also get access to running, boot camp, strength, yoga, meditation and more through the app as part of the Peloton membership.