The CEO of Hydrow Inc. takes full credit for Peloton’s recent move into the rowing machine game. And he’s pretty excited to see the new competition.
“Rowing is going to replace indoor cycling as exercise over the next few years. And I really believe that Hydrow has been that transformative catalyst for that change in the marketplace. And I’m so excited. I just think it’s fantastic,” said Hydrow chief executive and co-founder Bruce Smith.
The Boston-based fitness technology company came onto the scene in 2017 with its rower that allows people to digitally row in sync with professionals who are live on the water around the world. Smith said Peloton’s entry into this sport only confirms the growth of the at-home rowing industry and Hydrow’s future opportunities.
“Honestly, anybody who says the word rowing is our friend because we want people to understand the positive impact that it can have on their fitness routine and how they feel every day,” Smith said.
Funding, layoffs and more funding
Hydrow hasn’t been without its tough moments in the last year. The company laid off 35% of its workforce in July. Hydrow had more than 200 employees before the layoffs, meaning that around 70 employees were impacted.
Smith said there’s been a shift in the last year among investors from focusing heavily on growth to cashflow positive businesses. The company has made some changes to enter a new phase and meet those expectations.
“I’m glad that we were ahead of the curve in terms of our decision-making process because the company is very, very healthy and well positioned to grow,” Smith said.
This new phase includes new funding. Hydrow has brought in nearly $300 million since its launch, including $76 million in two separate raises this year. Smith said he would have more “great news” to share about funding in the next month or so.
“The funds that we’re using now are intended to really see us through to whether we do an IPO or some other type of transaction. Carrying the company through that period when we are cashflow positive and continue to grow successfully,” Smith said.
Smith declined to discuss whether Hydrow was profitable, saying that the private company does not share those numbers.
A new rower hits the market
Peloton, whose main exercise equipment has been its bikes and treadmills, announced this week that it was releasing a rowing machine. The base model Peloton Row —without the bells, whistles, row mat and sport water bottle,—will cost $3,195. The company offers an additional $44 per month membership to Peloton’s exercise classes and programs.
Smith said he was taking “full credit” for Peloton’s entry into the rowing space.
Tom Cortese, Peloton’s co-founder and chief product officer; then-CEO and co-founder John Foley; and former president William Lynch visited Hydrow in 2018.
Smith said they just called him up and asked to see Hydrow’s product. The Peloton leaders had several conversations with Smith and viewed the startup’s prototypes.
While Peloton is a big name in the fitness industry, Smith wasn’t concerned about the company taking over at-home rowing. He said Hydrow is the "Tesla to Peloton’s Ford," or "Apple to their IBM," in this industry.
Smith said his experience as a U.S. national team rowing coach has allowed Hydrow to create an authentic experience with its hardware and video that others can’t copy.
Hydrow’s tech is designed to feel as close to being on the water as possible, Smith said. For example, the resistance mechanism on the rowing machine is designed to mimic how the oars interact with the water and the acceleration and deceleration of a boat.
Hydrow sells two rowing machines of different sizes for $2,495 and $1,495. The rowers are sold through Hydrow’s website and at Best Buy and Fabletics.
The company also markets its $38 per month membership to owners of its machines. Through the membership users can stream rowing workouts filmed on waterways around the world. Nothing is filmed in a studio.
“And it’s patented,” Smith said. “We own moving synchronously on your rowing machine with an athlete on the water.”
Hydrow has made moves to enforce its rowing machine patents recently. Earlier this year, Hydrow sued iFIT Health & Fitness Inc., which makes exercise equipment under the brand name NordicTrack, for patent infringement after the company released its RW900 Rower.
In the complaint, Hydrow said that its rower was inspired by “a wave, a 1971 Maserati Ghibli, and the bow of a Stämpfli single scull rower.” Hydrow alleged that iFIT’s new rower “copies all of the significant aspects of the award-winning design that has led to the success of the Hydrow Rower.” Hydrow and iFIT recently reached an undisclosed settlement.
Smith said the company is now focused on innovating and delivering new products. It will roll out a new circuit training feature in the next few months and is leaning into its personal training offering.
