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news
Peloton bike (via YouTube)Peloton teams up with Amazon in bid to halt sliding bike sales
Peloton has teamed up with online retail giant Amazon in a bit to halt the decline in sales of its static bikes.
The move marks the first time the beleaguered at-home fitness brand, which until now has sold its equipment through its own website, showrooms and what other direct sales channels, has partnered with a third-party retailer to reach consumers.
Announcing the initiative yesterday, Peloton’s chief commercial officer Kevin Cornils said: “Expanding our distribution channels through Amazon is a natural extension of our business and an organic way to increase access to our brand.
“We want to meet consumers where they are, and they are shopping on Amazon.
“Providing additional opportunities to expose people to Peloton is a clear next step, as we continue to generate excitement for our unparalleled connected fitness experience,” he added.
Besides its signature Peloton Bike, which will initially retail at $1,445 through Amazon, the company will also be selling other products through the partnership including its cycling shoes and clothing.
Jim Adkins, vice president of recreational and vocational categories at Amazon, commented: "We are thrilled to have Peloton products available for our customers in Amazon stores.
“Peloton is all about bringing their community and energising fitness routines into the home.
“With Amazon's convenient shopping experience, we hope to further that mission by providing customers with high quality, innovative products to take their health and fitness to the next level.”
The Peloton Bike will be available for delivery to most of the US, with purchasers given the option of assembling it themselves, or having it done for them, for free, by a specialist.
Peloton’s sales boomed during 2020 and early 2021 as lockdowns introduced by governments in response to the coronavirus pandemic in key markets including the US, Germany and the UK caused gyms to close, with people instead looking for ways to exercise at home.
Sales slumped however once restrictions were lifted and the company has since been forced to shelve plans to make its bikes in the US instead of Taiwan where production is handled by a contractor, and it has also laid off staff and has announced closure of some showrooms.
> Peloton stops making bikes in US as shares hit all-time low
News of the tie-up with Amazon saw the Nasdaq-listed company’s shares jump 20 per cent to 13.44 cents yesterday – but that is still well under a tenth of their all-time high of 162.72 cents, reached on Christmas Eve last year.
> SoulCycle trolls Peloton by offering users free classes – provided they trade in their bikes
Simon joined road.cc as news editor in 2009 and is now the site’s community editor, acting as a link between the team producing the content and our readers. A law and languages graduate, published translator and former retail analyst, he has reported on issues as diverse as cycling-related court cases, anti-doping investigations, the latest developments in the bike industry and the sport’s biggest races. Now back in London full-time after 15 years living in Oxford and Cambridge, he loves cycling along the Thames but misses having his former riding buddy, Elodie the miniature schnauzer, in the basket in front of him.
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Waste Investigations Support and Enforcement (WISE)..... No, not wise: stupid.
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7 comments
If Peloton are really serious about reaching consumers they should get their subscription bundled in with Amazon Prime....
Unfortunately their business model needs them to make £12.99 - £39 per month per member, while Prime costs £7.99.
I had a similar conversation with a friend some time back. I reckon that it's only a matter of time before Peloton run out of money and either go bust or get bought.
My bet was that Amazon would buy the company and bundle the subscription with Prime as a value add. Amazon already have massive data center operations and distribution and could run Peloton for a fraction of the price that Peloton currently do.
but data centres arent free, they cost lots of money to cool & the power these things are consuming is so great in parts of West London its put a block on new building developments, simply because the power grid cant cope and needs to be upgraded by national grid first which could block developments for upto a decade.
if you think your power bill is bad, theres no energy cap on business energy bills, Bezos may have the money to afford it, but this isnt about affordability as much as it is having a business model for Peloton thats actually profitable for them and it should be fairly obvious charging 2k for a static bike and then 40 per month to use it, is going to be pretty niche.
they should hook up with David Lloyd gyms, if they are still a thing, dump some of their bikes in there and run peloton spin classes with them.
Amazon already have huge data centers and capacity within their current infrastructure. Their current economies of scale are way better than anything Peloton could ever achieve. The cost to Amazon running Peloton would be a fraction of that currently being paid. Amazon won't need £12.99-£39 per month to run it at a profit. They don't need to make a profit, it can be a net-neutral value add to help retention
Yep, second biggest cloud footprint behind MS and just above google. That datacentre issue in West London could well be an Amazon one already and one of the costs Peloton has is paying AWS for use of its services worldwide.
David Lloyd gyms are still very much in existence and use Watt Bikes in the branches I visit.