" Positioning the company for a sale and charting a new path forward, Blackwells said Peloton should focus on fitness-as-a-service, or FaaS, by: focusing on softwareoutsourcing manufacturingcreating an open ecosystempartnering with equipment makers"

"Peloton’s quest to become the Apple of fitness hamstrung the brand. Forgoing vertical integration, new content/software/hardware bundles are emerging. Whether Peloton pursues FaaS or not, open ecosystems will continue to gain traction."

The last decade showed that questionable business models can subsist for a long time (and even flourish) when capital is abundant. Thirteen years after its founding, Uber is still figuring out how to be profitable: the company’s gross margins actually declined seven percentage points over the past three years, and the net profit margin is -3%.