How a Fitness Tech Pioneer Spun Out of Control

Flywheel Sports emerged in 2010 as a revolutionary force in boutique fitness, co-founded by Ruth Zukerman, a key architect of SoulCycle’s success. Seeking to elevate indoor cycling with technology and competition, Flywheel introduced the TorqBoard—a real-time performance tracking system that displayed riders’ power output, resistance, and rankings on a live leaderboard. This data-driven, stadium-style experience differentiated it from SoulCycle’s emotionally charged, candlelit classes and quickly attracted a loyal, high-frequency clientele. By 2014, Flywheel expanded to 25 studios across the U.S. and into the UAE, raising $121 million in funding, with major backing from L Catterton and Global Endowment Management, who saw it as the leading indoor cycling brand. However, the rise of Peloton, founded in 2012, introduced a disruptive at-home model that combined high-end connected bikes with live-streamed classes, threatening Flywheel’s in-studio dominance. In response, Flywheel launched "Flywheel Anywhere" in 2017, aiming to compete in the home fitness market. This move triggered a high-profile legal battle: in 2018, Peloton sued Flywheel for patent infringement, alleging its leaderboard and streaming features copied Peloton’s proprietary technology. The lawsuit revealed explosive claims of corporate espionage, including allegations that investor Michael Milken—connected to Flywheel—had extracted insider information from Peloton’s CEO during a pitch event, a maneuver dubbed "Project Magnum" in internal documents. In February 2019, Flywheel settled, publicly admitting to copying Peloton’s leaderboard and agreeing to remove the feature, effectively crippling its home product. By March 2020, Flywheel Anywhere was shut down, leaving customers with non-functional equipment. Already financially weakened—having ceded majority control to lender Kennedy Lewis in 2019—the company faced its final blow with the onset of the COVID-19 pandemic. Government-mandated gym closures devastated its in-person business model. Unable to pivot effectively, Flywheel Sports filed for Chapter 7 bankruptcy in September 2020, permanently closing all studios. The collapse ended not just a company but a community, as members and instructors mourned the loss of a space that provided physical challenge, emotional connection, and mental resilience. Despite its downfall, Flywheel’s legacy endures. It pioneered the integration of real-time performance metrics and competitive dynamics in group fitness, influencing industry standards now common in digital and boutique studios. Its story underscores critical lessons about innovation, overextension, and vulnerability to external shocks. The legal conflict with Peloton highlighted the high stakes of intellectual property in tech-driven fitness, while its inability to adapt to a digital-first world during a global crisis revealed the fragility of brick-and-mortar models. Founders like Zukerman and Jay Galluzzo continued shaping the fitness landscape post-Flywheel, demonstrating entrepreneurial resilience. Ultimately, Flywheel’s journey reflects the volatile intersection of technology, human ambition, and market forces—where groundbreaking ideas can redefine an industry, yet still fall victim to competition, legal challenges, and unforeseen global disruptions.

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