Zwift

Zwift turns a stationary bike into a multiplayer video game. Pedal harder and your avatar goes faster. Ride with friends in virtual London or fictional worlds. The indoor trainer becomes a gaming console. Zwift charges 14.99 monthly for the software. The hardware is someone else's problem. The model launched in 2014 targeting serious cyclists stuck indoors during winter. By 2023, 5 million registered users with peak concurrent riders exceeding 70,000. Revenue crossed 200 million. The subscription was sticky because cyclists had invested training history. Years of power data and racing statistics lived exclusively on Zwift. The moat deepened through network effects. More riders meant more group rides, more races, more social activity.