Flywheel kills its home bike but Peloton will take its riders

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Flywheel home bike kicked off the road

In a legal settlement over a patent dispute with Peloton, Flywheel has agreed to shut down its home bike streaming service. But owners of Flywheel's home bike won't be left high and dry. They can trade in their bikes for a Peloton. Reported by Teresa Priolo

In early February, Peloton Interactive and Flywheel Sports announced a settlement reached over a lawsuit of alleged technology theft. Both companies make and sell stationary exercise bikes that stream live and on-demand classes to riders. 

But Peloton's home bike and streaming service came first. The U.S. Patent and Trademark Office granted Peloton a patent in November 2015.

The patent covers the method of providing cycling classes to remote users by way of a digital communication network. The stationary bike has a display screen that works in real-time and shows riders' stats on a leaderboard.

As part of the settlement, Flywheel admitted that it copied Peloton's so-called leaderboard technology for its home bike and settled for an undisclosed amount.

Flywheel has agreed to shut down its at-home cycling classes. So what does that mean for everybody who bought Flywheel's at-home bike?

Peloton wants them.

"We have worked with Flywheel to create an exclusive opportunity for them to join the Peloton community by trading in their Flywheel Home Bike for a like-new Peloton Bike at no cost to them," Peloton said in a statement. "We look forward to welcoming these new members into the Peloton family."