Peloton demand spurred by coronavirus could drive down price
CEO wants affordable version of its $2,000 exercise bikes
Peloton could peddle its at-home fitness bikes at a more accessible price point as demand continues during the coronavirus pandemic.
The at-home fitness company may start offering its stationary bikes that stream workouts live and on-demand at a more affordable prices, its CEO John Foley said in a recent interview with Time.
Peloton bikes could have a lower price point, its CEO said.
"We want to make our products even more affordable than they are today," Foley told the magazine.
Foley explained that the bikes cost a little more than $2,000 and users can pay for them in interest-free installments of $58 a month for 39 months.
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"If you can get to 20 bucks a month per person, you're starting to get below Planet Fitness-style, low-end gym chain affordability, and we think that that's a pretty big opportunity for Peloton," he said.
While a number of big-box gyms have struggled with nationwide COVID-19 closures forcing some like Gold's Gym to declare bankruptcy, Peloton has gained even more momentum. Now, even real estate developers are designing apartment spaces outfitted with stationary bikes in mind.
The company has reached 1 million connected users, Peloton announced earlier this month and reported strong earnings and analysts say the fitness brand will continue to grow as consumers throughout the country opt to workout at home even when they are able to go back to the gym.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| PTON | PELOTON INTERACTIVE INC. | 9.55 | -0.79 | -7.64% |
The future of group fitness studios is also looking grim as more findings show the dangers of working out in confined spaces in large groups amid the coronavirus pandemic. A new study from the Centers for Disease Control and Prevention looks at a class of 27 dance fitness instructors in South Korea that was responsible for more than 100 cases of COVID-19 spread across 12 fitness studios in the city of Cheonan.
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Peloton, which also sells treadmills in addition to its at-home workout app, increased sales by 66 percent, the company reported in its third-quarter results.