Peloton has raised the price of its monthly fees in the United States and Canada, the company stated today. The cost of the company’s all-access package will rise from $39 to $44 in the United States and from $49 to $55 in Canada starting June 1. This is the first time Peloton has raised its monthly prices, according to the company. The monthly fee for Peloton’s digital-only plan will continue at $12.99. “Creating excellent content and an engaging platform has a cost,” the firm stated in a news release. “This price increase will enable us continue to deliver for our members.” “As we continue to expand out our collection of material for our worldwide audience, international membership cost remains constant.”
In an effort to make its gear cheaper, the business also stated that it will cut the price of its workout equipment later today. The move is a “strategic choice to play for scale and enhance market share,” according to Peloton. Peloton didn’t say much about the price reduction, but according to CNBC, the Peloton Bike will cost $1,445, plus a $250 delivery fee, instead of $1,745. According to reports, the Bike+ will now cost $1,995 instead of $2,495 and the Tread will cost $2,695, including a $350 delivery fee, down from $2,845. According to CNBC, the price hikes for the equipment will take effect at 6 p.m. ET today.
The price increases announced today are part of new Peloton CEO Barry McCarthy’s aim to develop the firm’s community, according to the company. After former Peloton CEO John Foley stepped down, McCarthy, a former Spotify, and Netflix executive took over as CEO. Simultaneously, the corporation slashed 2,800 workers. Peloton grew in popularity when gyms closed and individuals were confined to their homes due to the epidemic. However, the firm has had a difficult year thus far, and the manufacture of bikes and treadmills was halted in January owing to poor demand.
Peloton’s new lower equipment costs might help the firm attract new clients and generate money from recurring subscriptions from these new consumers. Peloton is seeking to bounce back in a variety of ways, including launching a test program dubbed “One Peloton Club” last month, which allows members to rent a Peloton Bike for a monthly price. The firm hasn’t disclosed the program’s cost, although The Wall Street Journal reported that monthly memberships range between $60 and $100. In the United States, the program is now offered in a few markets.
