Peloton Start Trial of a New Pricing System

Barry McCarthy, Peloton's new CEO, has only been in command of a connected fitness company for about a month. But he's already testing ways to attract new customers and make their business more profitable and he also refreshes the circle of executives closest to him.

Peloton has confirmed that it will begin testing the new pricing system that pays a  monthly fee for both exercise equipment and access to Peloton's on-demand fitness classes. If the user cancels, Peloton will get the bike back.

The test runs over a period of time in Texas, Florida, Minnesota, and Denver and costs $ 60 to $ 100 per month. This option can only be selected at Peloton stores or Peloton gyms, not online.

Peloton also announced that it has hired Andrew Rendich, former Chief Operating Officer of Grove Collaborative, as its Chief Supply Chain Officer to enter into force next week. Shari Eaton, the current Global Head of people, has been promoted to Chief People Officer and is reporting directly to McCarthy.

The bundle pricing strategy is just a test and it's unclear if and when Peloton will permanently adopt this idea, but BMO Capital Markets analyst Simeon Siegel gives Peloton's finances and brand image. 

The company is also developing new cardio products such as strength training machines and rowing machines along with a strength training device called Peloton Guides. Peloton aims to be a tougher candidate for Hydro, Tonal, Lululemon's Mirror and more by creating a variety of connected fitness options. People who already own bikes and treads want to buy more in the Peloton ecosystem, including their own apparel.