Peloton Extends Bike Rentals to the UK

Peloton wants to set Brits up on a loaner.

The news: The connected fitness company extended its rental scheme to the UK, offering its Bike+ and unlimited content for £99/mo, plus an initiation fee.

Fitness-as-a-service

Launched in 2022, Peloton’s rental service has expanded from the US only to Canada, Germany, and now Britain.

Though churn remains higher than purchases of its bikes, the programme has outperformed expectations, gaining 10% YoY – representing a bright spot in an otherwise gloomy outlook.

• Last year, Peloton rebranded around its app, not hardware, to stem slowing sales.
• This month, CEO Barry McCarthy departed amid layoffs and sliding memberships.
• This week, it entered into a $1B term loan facility to pay its debts.

A lasting piece of McCarthy’s two-year tenure, Peloton expected rentals to grow 100% YoY in FY24, reaching a more diverse, female and younger demographic than its core business.

Punchline: Still a work in progress, affordable rentals could boost its business abroad. But, with a CEO search underway, Peloton’s turnaround remains TBD.