Representatives from the Chinese side say they think it likely that Chinese President Xi Jinping will attend the G-20 meeting later this month. But in order to reach a trade...China Economyread more
Software engineers straight out of college often make six-figure salaries, not counting equity compensation.Technologyread more
Wall Street, though, is clamoring for a rate cut, with an 85% chance of a move in July and a 61% probability of three reductions by year's end.The Fedread more
A company spokesperson said the outage was the result of a "an internal technology issue" and was not security related.Retailread more
Using MIT's living wage calculator, CNBC Make It mapped out the minimum amount a single parent must earn to meet their basic needs without relying on outside help in every...Earnread more
The flattening of the yield curve is exuding a bad omen for the stock market if history is any guide.Marketsread more
Hong Kong Chief Executive Carrie Lam announced at a press conference on Saturday that a contentious bill to allow extraditions to mainland China has been put on hold.China Politicsread more
Stratolaunch, the world's largest airplane, which flew once, is up for sale, sources familiar told CNBC.Investing in Spaceread more
Transparency is key… or is it? With the first-ever non-transparent, actively managed exchange-traded fund receiving approval from the SEC, "ETF Edge" goes straight to the...ETF Edgeread more
Mired in a crisis over its best-selling 737 Max plane, Boeing could hand the spotlight over to its rival Airbus at the Paris Air Show.Airlinesread more
A new update to the Apple Watch called watchOS 6 will notify you if the environment you're in is too loud and could damage your hearing.Technologyread more
Anyone who has ever ridden a Peloton home cycle knows, it's not about the bike. The whole draw is the screen, and its competitive leaderboard that shows riders from around the world, and their stats, on each and every ride. That technology is now at the heart of a lawsuit.
On Wednesday, Peloton filed suit against Flywheel, claiming Flywheel infringed upon Peloton's patents, "by creating a copycat of the Peloton Bike experience called the "FLY Anywhere" that, among other things, detects, synchronizes and compares the ride metrics of remote users on a graphical user interface," according to the suit filed in United States District Court for the Eastern District of Texas Marshall Division.
The draw of Peloton, which in the six years since its launch has grown its subscription member base to 600,000, has been its unique leaderboard on a screen attached to the cycle. Riders watch their own output scores, a combination of speed and resistance, to their previous rides as well as to riders who have done that specific class live or on-demand.
Peloton has grown to 900 employees and was recently valued at $4.15 billion, earning more than $300 million in revenue in 2017, according to the court filing. Peloton's growth has so far been in the home cycling space, but at the start of this year it launched a similarly high-tech treadmill, also with a leaderboard. Those treadmills were scheduled to begin shipping next month.
Flywheel, like its competitor SoulCycle, is largely a studio-based model, with 43 studios nationwide; Peloton is almost entirely home-based fitness classes with the exception of one cycling studio in Manhattan where the classes are live-streamed hourly.
Flyweel launched its FLY Anywhere home platform in November, 2017. Like Peloton, riders can buy the home cycle with a screen and then pay a monthly subscription fee for content or just ride any stationary bike and stream the subscription content on a mobile device or streaming system.
In a December interview previewing the treadmill launch, CEO John Foley said he was not concerned about competition in the stationary cycling space. This is an exerpt:
Soulcycle and Flywheel are fantastic brands and big brands and known national brands for the studio space. They operate great studios and hire instructors and run the local studios. In order for them to become a hardcore technology shop like Peloton, there is a lot that needs to happen. I would not give them a good chance of doing all those things that executionally need to happen to reinvent yourself or reinvent your DNA as an innovation and technology company, which Peloton started as.
I don't want to be cavalier about the competition. I think that there will be real competition, but from my perspective we would be more worried about a technology company, call it an Amazon, coming into our space, versus a content company trying to figure out what Peloton does. It just doesn't feel like it's a viable threat, but we'll see what happens.
The lawsuit also claims that Flywheel received proprietary information from Peloton via Michael Milken, whose claim to fame was pleading guilty to violating securities laws back in 1990. Milken and Foley met at an invitation-only, J.P. Morgan investor conference.
Foley was pitching to the conference of investors and allegedly spoke to Milken afterward about potentially investing in Peloton. In the conversation, the suit alleges, "Milken held himself out to Foley as an interested, potential investor in Peloton and pushed for information on topics including Peloton's future business plans and strategy, and how or whether Peloton could protect its intellectual property and exclude others from the at-home cycling business."
Milken did not, allegedly, disclose that he was a major investor in Flywheel. Milken is not a defendant in the suit.
Andy Wong, chief marketing officer for Flywheel Sports said in a statement, "Flywheel firmly denies the claims raised by Peloton and strongly believes that its ANYWHERE product does not infringe any valid claim of Peloton's patents. Peloton's lawsuit is a classic example of a big business trying to intimidate a competitor out of the marketplace."
"Flywheel is proud of our advancements and will not be intimidated. We intend to vigorously stand up for ourselves against Peloton's claims, and any attempt to deny customers access to our ANYWHERE at home bike."