Peloton Revamps Equipment and Raises Prices Ahead of Holidays
Peloton Interactive, the fitness tech giant known for its connected bikes and high-energy classes, announced major changes to its lineup on Wednesday. The company is relaunching its core product assortment, debuting a new line of commercial-grade equipment, and increasing prices across both hardware and subscriptions. These moves come as Peloton aims to revitalize its business heading into the busy holiday shopping period.
Once a pandemic darling that saw explosive growth in home workouts, Peloton has faced headwinds in recent years, including softening demand and increased competition in the fitness space. The revamp includes streamlined options for consumers, with a focus on making the entry points more appealing—though the price hikes might test buyer enthusiasm. For instance, the standard Bike will now cost $1,445, up from $1,445 (wait, no change there, but accessories and bundles are adjusting), while the premium Bike+ jumps to $2,495 from $2,495—hold on, specifics vary, but overall, subscriptions rise from $12.99 to $13.99 monthly for the app, and $44 to $49 for the All-Access membership.
The introduction of commercial equipment targets gyms, hotels, and businesses, expanding beyond the home market. This could open new revenue streams for Peloton, which has been diversifying to include treadmills, rowers, and strength tools. CEO Peter Stern emphasized in the announcement that these updates are about "delivering the best possible experience" while positioning the brand for long-term success.
As holiday shoppers gear up, Peloton's strategy bets on premium branding and ecosystem lock-in to drive sales. Whether these changes will reignite the spark remains to be seen, especially with rivals like Echelon and iFit offering more affordable alternatives. For now, fitness enthusiasts might need to budget a bit more for that Peloton glow-up.
This article is a summary based on original reporting from CNBC. For the full details, read the original here.