Peloton is cutting the price of its original at-home exercise bike for the second time in a year, a sign that the trendy fitness company is facing fiercer competition from rivals producing significantly cheaper products and people returning to gyms.
Beginning Thursday, its core bike will cost $1,495 — a roughly 20% reduction — with the monthly financing rate dropping $10 to $39 a month. Peloton said in a press release that the price cut is part of its mission to making the company's products"more accessible and attainable." Peloton also announced new financing terms for its recently released Tread and pricier Bike+ with the monthly prices dropping by several dollars and the company offering 0% APR.
Peloton CEO John Foley recently said that the price cuts and introduction of cheaper machines, such as the Tread, is aimed at attracting new members that might think it's just for the wealthy. The company is also growing its app membership base, which feature workouts that don't need Peloton machines, with price reductions for qualified people and star-studded classes.Peloton stock dropped 15% after hours Thursday and shares of the company are down about 20% this year.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Bike price cut, rising costs to hit Peloton's profitabilityPeloton Interactive Inc said on Thursday its near-term profitability would suffer due to a decision to slash the price of its exercise bike and higher commodity and marketing costs.
Read more »
Peloton slashes price of its bike, warns of hit from higher costsPeloton Interactive Inc on Thursday lowered the price of its exercise bike and said its near-term profitability would take a hit due to the pricing change and higher costs.
Read more »
Peloton faces pandemic uncertainties as it launches latest treadmill in U.S.Peloton Interactive Inc investors want answers to two questions when the company reports results on Thursday: Will the Delta coronavirus variant drive a new surge in sales, and are customers ready to look past a recall by the exercise bike and treadmill makers?
Read more »
Peloton financials show decline for at-home fitnessThe Peloton slowdown is here, new financials show.Stay on top of the latest market trends and economic insights with Axios Markets. Subscribe for freeWhy it matters: Few benefited from the at-home fitness phenomenon ushered in by the pandemic like Peloton.If (or when) the boom times taper off might be a key indicator of whether the colossal workout economy underwent a permanent shift.Data: Company filings. Chart: Axios VisualsWhat’s new: Peloton’s connected fitness subscribers — people who own a
Read more »
How The Pandemic Helped Turn Peloton Instructors Into Influencers'I think the pandemic and Peloton has kind of like opened up a new lifestyle that can feel very 'Black Mirror'-ish.'
Read more »