Peloton, a bike-sharing company that was previously valued at around $15 billion, recently filed for Chapter 11 bankruptcy. This comes just a few months after Valor, its competitor in the bike-sharing market, also filed for Chapter 11. The pandora’s box of problems faced by these companies, which was started by billionaire Elon Musk, doesn’t seem to be closing anytime soon.
Even before these recent setbacks, Peloton was struggling. It was valued at around $15 billion shortly after it was bought by French luxury goods company Richemont, but sales never took off as expected. It ended up trading at a significantly lower price point, and, as a result, the company lost a significant amount of money. In fact, the company posted a $70 million loss in the most recent quarter alone.
Musk, who is worth around $18.8 billion, invested heavily in Peloton. He purchased a 10% stake in the company for $1.6 billion and later increased his share to 19%. At the time of his investment, he said he was confident the company would become “a huge success.”
Musk’s enthusiasm wasn’t misplaced. After years of declining sales, Peloton finally started to gain momentum. It added over 6 million subscribers globally since the start of 2018 and surpassed 20 million monthly active users as of September 2019.
Peloton’s struggles should come as no surprise. The bike-sharing industry has been struggling for years as the costs of maintaining and running a fleet of bikes far outweigh the revenue they generate. That’s one of the reasons why some companies prefer to rent out their own private jets rather than use commercial airlines. It’s also one of the main reasons why the stock price of companies in the bike-sharing space have declined significantly in the past year. Companies like Peloton and Valor are battling an uphill battle. They need to make huge investments in order to maintain their current user base, and that simply isn’t sustainable.
Luckily, there are alternatives to biking for transportation. Public transportation is relatively affordable, and there are plenty of options available if you don’t own a car. If you do drive, however, public transportation isn’t always the best option. It’s either slow or impossible to find a parking space, and even if you do find a spot, it’s often overcrowded and/or expensive to park.
That’s where private jets come in. As a result of reduced airfare and higher demand due to the spread of COVID-19, businesses can now afford to fly their employees to work. And what’s more, they can now afford to buy that first-class seat or two. Airlines have responded by slashing their prices, and that makes a biker’s life a little less stressful. In fact, some companies are even offering special discounts for flying during the pandemic.
Why Are More People Renting Private Jets?
The demand for private jets has skyrocketed in light of the COVID-19 pandemic. As air travel restrictions began to be lifted, companies scrambled to rent the luxury aircraft out to make up for the lost revenues. Since then, the need for private jets has only increased, and many high-end aviatical providers saw an opportunity to cash in on this growing demand.
The number of people flying for work declined as a result of the pandemic. People chose to stay at home rather than risk being put in a situation where they would have to fly. As a result, thousands of private jets were returned to the rental companies, and customers had to find alternative ways to get to their destinations. That’s when the biker lifestyle gained popularity.
It’s no wonder why so many people are turning to private jets. Not only do they provide the convenience of getting wherever you need to go without having to worry about traffic and parking, but they also give you the option to bring along whomever you wish. Sometimes a company needs to send a larger group of people, and having a private jet makes doing so far more convenient. It also allows for a luxury travel experience that most can only dream about.
What Are the Main Benefits of Renting a Private Jet?
There are quite a few benefits to renting a private jet rather than taking a taxi or bus to your destination. Here are just a few of them.
No Lodging Needed
Accommodation is one of the main concerns for any traveler, and it doesn’t just relate to finding a place to sleep. Many people are hesitant to recommend a hotel due to fears of contracting COVID-19. That’s why, in some cases, people are trying to get by without stopping by night. That’s why companies like Flexjet and Private Jet Services offer the ability to turn up and drive away as soon as your plane is ready. That way, there are no concerns about staying at a strange place or hotel room. Your belongings are safely stored in the event your flight is delayed, and you can move on when you’re ready. That’s the kind of reassurance travelers need as they look to travel to destinations where the virus is still prevalent.
No Lodging Needed
Accommodation is one of the main concerns for any traveler, and it doesn’t just relate to finding a place to sleep. Many people are hesitant to recommend a hotel due to fears of contracting COVID-19. That’s why, in some cases, people are trying to get by without stopping by night. That’s why companies like Flexjet and Private Jet Services offer the ability to turn up and drive away as soon as your plane is ready. That way, there are no concerns about staying at a strange place or hotel room. Your belongings are safely stored in the event your flight is delayed, and you can move on when you’re ready. That’s the kind of reassurance travelers need as they look to travel to destinations where the virus is still prevalent.
Convenience
One of the biggest pluses of renting a private jet is the level of convenience it brings. You don’t have to worry about traffic, parking, or finding a place to stay. The pilot will know exactly where to land, and it’ll be ready when you are. Traveling on a private jet is far easier and more convenient than trying to find a place to stay and/or catch a bus.
Convenience
One of the biggest pluses of renting a private jet is the level of convenience it brings. You don’t have to worry about traffic, parking, or finding a place to stay. The pilot will know exactly where to land, and it’ll be ready when you are. Traveling on a private jet is far easier and more convenient than trying to find a place to stay and/or catch a bus.
Privacy
Another important consideration for any traveler is maintaining their privacy. While most people aren’t afraid of facing the crowds as long as they are in a safe situation, the idea of flying in a large group and being in the same confined space for several hours makes many of them anxious. That’s why companies like Flexjet and Private Jet Services offer the ability to turn up in a private jet and arrive at your destination without having to worry about who might see you. You can also be sure that the plane is kept clean and that no one gets sick from flying in it. There are also no overhead bins to fight over, so your belongings remain unseen by others.
It’s not only about maintaining your privacy. You can also ensure that your itinerary isn’t disclosed to the public. With a little bit of cunning, you can create a fake itinerary and arrive at your destination without anyone knowing the real reason for your trip. You can also use fake names and create fake emails to make it look like you’re on a corporate retreat.
Privacy
Another important consideration for any traveler is maintaining their privacy. While most people aren’t afraid of facing the crowds as long as they are in a safe situation, the idea of flying in a large group and being in the same confined space for several hours makes many of them anxious. That’s why companies like Flexjet and Private Jet Services offer the ability to turn up in a private jet and arrive at your destination without having to worry about who might see you. You can also be sure that the plane is kept clean and that no one gets sick from flying in it. There are also no overhead bins to fight over, so your belongings remain unseen by others.
It’s not only about maintaining your privacy. You can also ensure that your itinerary isn’t disclosed to the public. With a little bit of cunning, you can create a fake itinerary and arrive at your destination without anyone knowing the real reason for your trip. You can also use fake names and create fake emails to make it look like you’re on a corporate retreat.