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Amazon, Peloton Teaming Up to Sell Bikes

  • Beginning Wednesday, Amazon will sell select Peloton products.
  • The deal is Peloton’s first with another retailer.
Peloton
Peloton

Peloton is teaming up with another retailer for the first time, announcing an agreement with Amazon to sell a selection of its equipment and accessories.

Beginning Wednesday, Amazon will sell Peloton’s original Bike for $1,445, the Peloton Guide for $295, apparel, and accessories including cycling shoes, bike mats, and its heart rate armband. 

  • The Bike+ and Tread treadmill — whose prices recently increased by a respective $500 and $800 — will not be available on Amazon, but Peloton CCO Kevin Cornils told CNBC its Amazon-sold products could vary over time.
  • In-home delivery and expert assembly for the Bike is available at no additional cost.

Cornils highlighted the possibility that the company will look for other similar deals, calling the agreement “a really good start for us, with a digital retailer, to test the waters.” 

Physical retail remains important to the company’s strategy, according to Cornils, and the Amazon deal is “more of a reflection of us trying to match the consumer.”

Cycling in New Strategies

The agreement is Peloton’s latest effort to turn its business around. In February, Peloton publicized efforts to cut roughly $800 million in annual costs.

In August, Peloton CEO Barry McCarthy revealed the company would soon offer a bike that doesn’t require professional delivery or setup. Days before, McCarthy wrote to employees that Peloton would eliminate 784 jobs, reduce its retail locations, and increase prices for the Bike+ and Tread. 

In July, Peloton announced it would stop its in-house bike production.

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