What city are you in? Here in Portland, spin classes are more than double that. I think Peloton's market overlap is a combination of people who would sign up for Spin classes at a dedicated studio, people who would sign up for Spin classes at a nice gym that gives them as part of a membership, and people who think cycling is a good workout and have high disposable income, but no desire to join a real class or gym of any kind.

It's obviously not for people like me who would happily buy a set of used free weights for a few hundred bucks if I had a garage or basement.