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Peloton is cutting the prices of its hardware, but there’s a catch: The connected fitness company is also raising its subscription fee.
The original Peloton bike’s price will drop $300 to $1,195, the Bike+ will fall $500 to $1,995, and the treadmill’s cost will be slashed $150 to $2,345.
Subscription prices will rise $5 each month to $44 in the U.S., $4 each month to $55 in Canada, and won’t jump at all in other international markets.
“We want more people to be able to afford our hardware,” the announcement read. “This is a strategic decision to play for scale and increase market share.”
- Hardware prices will drop at 6 p.m. ET on Thursday, and subscriptions prices won’t increase until July 1. The regular bike will ship for $250, the Tread for $350, the Bike+ for no charge.
- The company recently announced it would lower the price of its Guide strength-training device by $200.
Peloton’s CEO Barry McCarthy took over for John Foley in February, and the latest change is part of a comeback plan to focus on bringing in more recurring revenue. In March, the company began testing Peloton rentals for a monthly fee, which also includes its subscription service.
Blackwells Banter
Blackwells Capital, an activist investor that has less than a 5% stake in Peloton, is again pushing for a sale of the company, suggesting it’s made little-to-no progress under McCarthy. Shares have fallen nearly 35% since he became CEO.
