Home Business Peloton is expanding its nationwide bike rental program

Peloton is expanding its nationwide bike rental program

by SuperiorInvest

A Peloton stationary bike for sale at the company’s showroom in Dedham, Massachusetts, USA, on Wednesday, February 3, 2021.

Adam Glanzman | Bloomberg | Getty Images

The peloton The company said Tuesday it will expand its rental program nationally.

The announcement came a day after Peloton revealed sweeping changes in leadershipincluding the departure of co-founder, executive chairman and former CEO John Foley, as well as co-founder and chief legal officer Hisao Kushi.

The rental program began in test markets at Peloton’s brick-and-mortar stores in Texas, Florida, Minnesota and Colorado. For $89 a month, customers get an original Peloton bike and membership. There is an additional $150 for setup. They can also opt for Bike+ for $119 per month.

The rental program comes soon after the company began selling certified pre-owned bikes and announced that Peloton would start selling products on Amazon. All of these steps contribute to increased cycling accessibility and attract new users to Peloton’s subscriber base.

They are part of CEO Barry McCarthy’s aggressive turnaround plan. He took over the role from Foley earlier this year the company announced massive layoffs. Since then, McCarthy, a Netflix and Spotify veteran, pushed for a more subscriber-centric business model.

“I don’t think we’re a hardware company. We’re a software company. We’re in the business of developing a great user experience,” McCarthy said at the Goldman Sachs Communacopia and Technology conference on Monday.

He added: “A very small percentage of the cash value that we collect from users that we collect when you buy a piece of hardware. The vast majority is lifetime value that accumulates month after month, month after month in the form of a $44 Subscription.”

Shares of Peloton were down around 8% on Tuesday morning amid a broader market decline.

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