A spin bike is not really the same thing as a bike on a trainer because of the social aspect, and the classes. And the cost of a Peloton and the subscription is less than traditional spin classes.
I am surprised that people are willing to spend 2x-10x as much as competing products when you look at the total cost.
Isn’t a big assumption that people actual desire “to be social”? I’m a former part time fitness instructor who spent 15 years in gyms all across the metro area, only ran outside for races with friends, and they were my social circle, but now as an older married man in my mid 40s, I have no interest in the gym scene. I like having a home gym with cardio equipment and weights.
But as far as spending more than the functional equivalent, do you have the cheapest house that would give you shelter? The cheapest car? The cheapest phone?
If you have no desire to be social you would most likely not buy the internet connected and subscription bundled spin bike, and get a much cheaper bike without those features. Or by a better quality one with a power meter for less money.
There is a difference between interacting with people and being around people. For instance, you can enjoy the camaraderie of other people doing the same thing and not actually having to engage in meaningless smalltalk around socially acceptable safe non controversial topics with people you don’t have anything in common with.
I loved teaching classes with 50+ people and was completely comfortable. But I hate interacting with large groups in more social settings.
Zwift adds the social to a bike on a trainer. The big advantage of a bike on a trainer is that it's the bike you will use on the road so the fit etc is exactly the same when you do get out (I realise there's a huge market for indoor only)
It is also a disadvantage. The peloton bike is heavier (IE sturdier), has more grip options, takes up less floor space (the peloton is about a foot shorter than my actual bike, not including any potential trainer that would be required), is much more easily adjustable (if multiple people are using it), and is purpose built for the function it serves. I only have experience with one type of trainer, so this may be trainer dependent, but the peloton is also much quieter than the type of trainer I've previously used.
Not to mention that when I want to go out and ride I don't need to detach my bike from the trainer, or when I want to get a workout I don't need to attach my bike to the trainer. As somebody that is primarily a bike commuter, the accessibility alone is worth having 2 bikes. And if you are going to have 2 bikes, why not buy an indoor bike that is specialized for the task.
I am surprised that people are willing to spend 2x-10x as much as competing products when you look at the total cost.