Peter Stern, a former Ford executive and co-founder of Apple Fitness+, was named Peloton’s new CEO and president on Thursday.
As president of Ford Integrated Services, Stern is principally in charge of the automaker’s subscription services, including security, connectivity, BlueCruise, and Pro Intelligence. He oversaw the team that developed the company’s digital products.
On January 1, Stern is expected to leave his position at Ford and assume leadership of Peloton. Chris Bruzzo will resign as co-CEO on Friday, while Karen Boone, the interim co-CEO, will remain in the position until the end of the year. Bruzzo and Boone will remain on Peloton’s board.
In Peloton’s history, Stern is the third CEO to hold the position. Peloton’s fiscal first-quarter earnings report was released concurrently with the announcement. The company’s stock ended the day up almost 28%.
We have complete faith in Peter’s ability to guide Peloton through this crucial period since he is an accomplished strategist with a proven track record of fostering innovation and sustainable growth. He has a thorough understanding of the health and wellness industry and contributes significant expertise in scaling distinctive technology-oriented platforms, which makes him ideally equipped to be Peloton’s next CEO, according to a news release from Jay Hoag, the board chair.
“In addition, Peter exemplifies Peloton’s core values, which include working collaboratively, empowering teams of intelligent creatives, and operating with a bias for action.”
About six months have passed since Peloton revealed that Barry McCarthy, a former executive at Spotify and Netflix, would be leaving his position after around two years.
After succeeding founder John Foley, McCarthy tried to save Peloton from extinction by drastically reducing expenses and changing the company’s approach.
By hiring Stern, Peloton is demonstrating that it is doubling down on its high-margin, recurring subscription income, which is currently the company’s primary value argument to investors.
Building expanding and maintaining Peloton’s connected exercise and app subscribers will probably be made easier by Stern’s experience managing Ford’s subscription business.
According to a news release, Peloton is looking for a new CEO who is passionate about helping people reach their fitness objectives, understands the company’s possibilities and challenges, and loves and respects Peloton’s products.
Stern joined Peloton in 2016, making him an early adopter. According to the firm, Stern “has spent over 20 years operating at the nexus of hardware, software, content, and services at Ford, Apple, and Time Warner Cable.”
He helped the industry build its subscription base into the millions as a co-founder of Apple Fitness+, and according to Peloton, he understands how to run a “complex, subscription-based business.”
The business mentioned the more than 30 patents Stern had obtained over the years, including one for online media content, and stated that it was also seeking a product inventor and strategist.
In a statement, Stern stated, “For me, working for Peloton is a dream come true.” Helping millions of people live longer, healthier, and happier lives is my mission. Peloton gives me the chance to achieve that because of its special blend of people, goods, and fervent members.