Peloton is gearing up to peddle a more accessibly priced treadmill and cut the cost of its stationary bike.
The home fitness company, known for bikes and treadmills that allow users to stream workouts from the comfort of their own living rooms, is cutting the prices of its equipment, Peloton announced Tuesday, as demand continues to surge amid gyms running on limited capacity during the coronavirus pandemic.
The fitness company’s new treadmill, called Tread, will cost $2,495 — much cheaper than its current treadmill, which costs $4,295. The previous model will also be renamed “Tread+” and will continue to be sold as a higher-end version.
In addition, Peloton is launching a new bike on Wednesday — Bike+ — marketed as a premium offering, and costing $2,495. The original Peloton Bike will also be available Wednesday at a lower price point of $1,895. Subscriptions to all Peloton equipment costs an additional $39 per month.
The new Peloton bike was made to allow users to do multiple workouts, like a total body workout integrating strength training with Peloton's cardio programming. It also has a new sound system and a 24-inch touch screen that swivels, so users can do yoga classes or weight train in a separate area.
The company has gained 2.6 million members since it launched eight years ago.
"Our goal is to be the go-to at-home fitness solution for as many people as possible, and with these new product launches, we’ll be able to offer access to Peloton’s best-in-class fitness content at various price points, depending on what consumers are looking for, especially in a world where people are increasingly working out at home," John Foley, Peloton’s CEO and Co-founder said in a statement.
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Those who own the original Peloton bike in the U.S. can trade in bikes in working condition and get a $700 credit towards its new Bike+, along with a free yoga accessories set.
The New York-based home fitness equipment company, whose signature equipment features screens to let users stream live workouts on demand, went public in June 2019. For those who can’t afford to drop thousands of dollars on the fitness equipment, the company also has its namesake app with live bodyweight workouts, like High-Intensity Interval training, cardio and yoga available for $12.99 a month. The fitness company’s app is also available on digital media player service Roku.
The at-home fitness market has skyrocketed as a result of stay-at-home orders put into place earlier this year during the pandemic. As a result, Peloton products have been backlogged, with some consumers waiting until fall or later to get bikes delivered. In May, Peloton reported a 66% increase in sales during the first three months of 2020.
SoulCycle debuted its own at-home stationary bike in March, costing $2,500 plus a $40-a-month subscription, at the height of the pandemic. And earlier this year, Tonal, which has been called the Peloton of weightlifting, debuted as an alternative to dumbbells, with on-demand and live weightlifting and a variety of other workouts.
A number of gym chains have struggled with nationwide closures. Gold’s Gym filed for bankruptcy protection in May. And the owner of the New York Sports Club in April weighed a Chapter 11 bankruptcy, filing as 95 percent of the company's gyms across the country closed to curb the spread of coronavirus, according to a report by Bloomberg Law.