Peloton recently dropped the news that it would reduce its distribution network, shift more to third-party logistics and plan to close retail showrooms from next year. It should therefore come as no surprise that the company is now partnership with Amazon sell his original bike, the Guideand clothes.
According to CNBCof the peloton Amazon store will sell the bike for $1,445, and guide will go for $295. (Both products were spared price increases introduced earlier this month.) Not included are the more expensive Bike Plus and Tread. Customers will be able to have the bike delivered to their home and can choose between self-assembly or having someone come and assemble it for them. Previously, the purchase of Peloton equipment included free white glove delivery and installation. Then, in January of this year, the company started charging an additional $250-$350. As part of the Amazon deal, delivery and home assembly will be at no additional cost.
“We want to meet consumers where they are, and they buy on Amazon,” Peloton chief commercial officer Kevin Cornils said in a statement. statement. CNBC also quotes Cornils as saying that Amazon already sees around half a million searches for Peloton products. And this despite the fact that, until now, the only way to buy was through the Peloton site and showrooms.
As for accessories, Peloton will also sell bike shoes, bike mats, bike weights, yoga straps and blocks, the Peloton heart rate band, water bottles and dumbbells. Clothing will include sports bras, tank tops, leggings, shorts, hoodies, joggers and hats.
The fact that Amazon is now a Peloton partner raises a few eyebrows. Amazon was among many companies rumored to be in the running to buy Peloton at the height of its financial difficulties. The e-commerce giant also had its own debacle with an ill-fated Prime Bike, which was set to cost $500 through a partnership with rival Peloton Echelon. Amazon later denied any involvement. With this deal, Amazon is likely to gain valuable customer and shipping data from Peloton — but at this point, Peloton likely sees Amazon’s greater reach as a valid trade-off.
Since taking the helm in February, CEO Barry McCarthy has been quick to lay out his vision for reviving Peloton’s struggling finances. Last week, McCarthy also said that Peloton was working on a DIY bike redesignand at the company’s third-quarter results in May, he noted that the company was exploring relationships with third-party retailers. Lo and behold, this Amazon partnership offers both.
McCarthy also recently floated the idea of expanding the A Peloton Club rental driverstreaming Peloton courses on third-party equipment, reintroducing reminder Tread Moreand possibly launch its next rower in time for the holidays. Wall Street has generally been skeptical of Peloton’s fortunes, but the company the stock jumped 18% following the news of the day. This reversal may be short-lived, however – Peloton is expected to release its fourth quarter results tomorrow morning.