February 9, 2020 - Post

Zwift Restructures, Rethinks Hardware

Photo | Zwift

Last week, Zwift laid off a number of senior employees.

What’s happening: Unrelated to coronavirus, the company is said to be undergoing a significant reorganization to focus on its core business and develop new hardware.

For context:

  • Zwift is a virtual platform for running and cycling.
  • To date, the company has raised $170M.
  • Unlike Peloton, Zwift doesn’t sell at-home equipment.

Why it matters: In our previous coverage of Zwift, we noted the company’s intentions: to become a virtual platform, esports contender, and even an Olympic sport — not a hardware provider. Now, those ambitions appear to have evolved.

Looking ahead: Will Zwift introduce an indoor cycling trainer, like Wahoo Fitness, or a full-fledged bike like Peloton or SoulCycle? Or is there an acquisition on the horizon that helps them accelerate into the hardware space? Stay tuned to see how things play out.

Joe Vennare
Joe Vennare
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