The Pods are a dance troupe that was only seen in the episode "Sharks vs. Pods." As later revealed in the episode, they are a dance group and Squidward is a notable member of this group.
The Pods were first seen just after their rivals, The Sharks, were kicked out of their favorite hangout. After a few words, The Pods challenges The Sharks to a showdown later in the day. Later, The Pods confront The Sharks with SpongeBob thinking it was a fight. Squidward steps in and tells SpongeBob that The Pods are a dance troupe and so are The Sharks. After everything is cleared up, The Pods and The Sharks finally face off in a dance contest but the police force shows up revealing they are a dance troupe as well. Even after Internal Affairs appear, The Sharks managed to win the contest thanks to SpongeBob.
The group is a reference to the group "The Socials" in the 1983 film The Outsiders.