Peloton is hiking up prices for its Bike and Tread products, allegedly as a result of inflation. Now the already rather expensive products will be even more so, beginning January 31.
At the end of the month, customers will be made to pay an extra $250 for the delivery and setup of the Bike, and an additional $350 for the Tread. The total cost for each is now $1,745 for the Bike, and $2,845 for the Tread.
These two services were previously included in the price of the products. Yikes.
The Peloton website now says that delivery and setup are included in the price of each product until Jan 31.
Credit: Screenshot: Peloton.
The cost changes will also take place in the UK, Germany and Australia, but in terms of equipment rather than for delivery and setup. Meanwhile, the monthly subscription fee for connected fitness users (eager for that on-demand content) will stay priced at $39.99, worldwide. The higher-priced Bike+ will also retain its original price of $2,495.
According to CNBC, who obtained recordings of a Peloton meeting, both growing inflation and higher supply chain expenses are being cited as the incentive. In a statement, a Peloton spokesperson said that “Peloton is being impacted by global economic and supply chain challenges” that “many other businesses” are currently experiencing.
Peloton is no stranger to fluctuating prices. In August, the company cut it less expensive Bike by about 20 percent in a bid to appeal to more consumers and amp up sales.
In 2020, Peloton shares rocketed by 440 percent, but saw a decline of 76 percent last year.
The company is also said to be working with consulting group McKinsey & Co., in an effort to review cost structures and potentially cut down on some jobs and stores.
