As it looks to return to growth and profitability, Peloton will soon start testing a new way to get a Peloton Bike as well as a Peloton subscription for a single monthly price. According to a new report from the Wall Street Journal, Peloton stores in select cities will offer a bike and subscription combo starting at $60 per month starting on Friday…
New Peloton monthly options launching this week
This new test program will be available for a “limited time” in select markets, including Texas, Florida, Minnesota, and Denver. Pricing will range from $60 to $100 per month and can be canceled at any time, though all customers will pay a nonrefundable delivery fee.
Today’s report explains:
Under the test program, people get a Peloton and a membership that includes access to all its courses for a single monthly fee, with the ability to cancel anytime. The offers would be available through Peloton stores, or studios, and not online. Subscribers would pay a nonrefundable delivery fee.
More specific pricing information is unclear for now. We’d imagine that the $60-per-month package will offer a standard Bike with a Peloton subscription, while the higher-end price point will offer a Bike+ with a Peloton subscription.
For reference, a Peloton All-Access Membership normally costs $39 per month and the standard Bike retails for $1,495. Financing a Peloton Bike through Affirm starts at $45 per month for 39 months. This means that a $60-per-month combo subscription will offer a savings of $24 per month over the current cheapest monthly cost, not factoring in any sort of tax or fees.
Also interesting is that, in an interview with the Wall Street Journal, new Peloton CEO Barry McCarthy said that Peloton and its investors have “agreed to put off any discussions around selling the company.” Instead, McCarthy plans to execute his idea of a “turnaround plan,” which includes making more on each subscription and reducing reliance on hardware to make a profit.
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