Peloton Planning to Cut Prices of Bikes and Raise its Subscription Charges

Peloton Interactive Inc is planning to cut the prices of its stationary bikes and treadmills and raise monthly subscriptions for online workout classes instead. The changes are made under the new CEO to focus more on its digital business and less reliant on sales of connected exercise equipment.

Starting June 1, Peloton device owners will pay $44 per month instead of $39 per month for access to metrics and subscriptions for live streaming and on-demand classes connected to bikes and treadmills. The $12.99/month fee for access to non-device courses remains unchanged.

Meanwhile, the company is dropping the prices of bicycles and treadmills. Peloton bikes previously amounted to $1,745 with shipping costing $1,445 with shipping charges of $250. Treadmills that were costing $2,845 including shipping will now cost $2,695 including shipping of $350.

The move comes a day after activist investor Blackwells Capital pressured Peloton to consider selling, and in a presentation, the company made little progress under CEO Barry McCarthy, who began in February.

McCarthy has taken over founder John Foley, who was criticized by investors for continued demand for Peloton products and was spending a lot of money to increase production.