NEW YORK, United States — At-home cycling phenomenon Peloton has launched lower-priced versions of its bike and treadmill, as it continues to leverage the accelerated shift towards at-home fitness.
In a move that could see the brand capturing a bigger share of its total addressable market, it has lowered the price point of its original Peloton Bike to $1,895 down from $2,245, as well as launching a cheaper treadmill — which is currently only available in the US — priced at $2,495.
This it hopes, will create more affordable entry points to experience Peloton, at a time when at-home fitness is being adopted by the masses.
“You want to be able to excite people to work out, and we saw that formula come to life with the first Peloton Bike and Tread,” Tom Cortese, Peloton’s CEO and co-founder told Wired.
“So the idea that we could make this more accessible to more folks and more homes in more markets, just felt like, Yes. We’ve got a runner here. Let’s do that next step and make it more compact and at a lower price point.”
The decision comes as a growing number of its competitors are also starting to take aim at a more mainstream demographic.
The new Echelon Connect EX-3 smart exercise bike is marketing itself as a cheaper alternative to Peloton. CEO Lou Lentine told Welltodo earlier this month that the brand is going after the 99%.
“The five bikes in our line can go from $500 to $2,000. All of them ride on the same platform. It doesn’t matter which one you can afford, you’re all riding on the same road and being entertained by the same instructors,” he commented.
Apex, meanwhile, a new at-home bike also positioning itself as an accessible alternative to its competitors, is soon to launch into British department store John Lewis — a strategy it hopes will further propel the brand into the mainstream market.
A growing opportunity
Demand for at-home fitness equipment has sky-rocketed over the past six months due to gyms and fitness studios shuttering their doors and consumers being forced to adapt their workouts under enforced lockdowns. However, for the most part, connected bikes, treadmills, rowers and other concepts such as Mirror, Tonal and Tempo sit at the premium end of the market.
The opportunity to tap into the lower end of the market has yet to be fully seized, but Peloton has been making quiet moves to address this for some time now. Back in December 2019, the company reduced the price of its mobile app, as well as releasing apps for both the Apple and Fire TV, making it easier and more affordable to access its content without owning a piece of its equipment. Extending its free trial period from 30 to 90 days can also be viewed as part of a push towards making the brand more accessible.
“We feel like we’re just getting started, in terms of how we can impact the health and well-being of people worldwide through our platform, content and products,” explained John Foley, Peloton’s CEO and co-founder.
Adding: “Our goal is to be the go-to at-home fitness solution for as many people as possible, and with these new product launches we’ll be able to offer access to Peloton’s best-in-class fitness content at various price points, depending on what consumers are looking for, especially in a world where people are increasingly working out at home.”
In addition to its new lower-priced products, however, the company did demonstrate its ongoing commitment to elevating the original Peloton experience with the introduction of the Peloton Bike+, which aims to keep existing customers within its growing ecosystem.
The Bike+, priced at $2,495 includes a rotating touchscreen to make streaming floor workouts easier, ahead of the brand launching a new Bike Bootcamp class format. It also includes touch-free resistance adjusting and a four-speaker sound system.
Following the news of its latest product expansion, Peloton saw its shares surge by 14%, with analysts predicting long term growth for the brand.