Peloton recently dropped the news that it would cut its distribution network, shift further toward third-party logistics, and plans to shutter retail showrooms starting next year. So it shouldn’t be a surprise that the company is now partnering with Amazon to sell its original Bike, the Guide, and apparel.
According to CNBC, Peloton’s Amazon store will sell the Bike for $1,445, and the Guide will go for $295. (Both products were spared from price hikes introduced earlier this month.) Not included are the more expensive Bike Plus and Tread. Customers will be able to get the Bike delivered to their homes and can choose between self-assembly or having someone come and assemble it for them. Previously, buying Peloton equipment included free white-glove delivery and installation. Then, in January this year, the company began charging an extra $250–$350 fee. Under the Amazon deal, in-home delivery and assembly will come at no additional cost.
“We want to meet consumers where they are, and they are shopping on Amazon,” Peloton chief commercial officer Kevin Cornils said in a statement. CNBC also cites Cornils as saying that Amazon already sees roughly half a million searches for Peloton products. That’s despite the fact that, up until now, the only way to buy was through Peloton’s own site and showrooms.
As for accessories, Peloton will also sell cycling shoes, bike mats, bike weights, yoga straps and blocks, the Peloton Heart Rate Band, water bottles, and dumbbells. Apparel will include sports bras, tanks, leggings, shorts, hoodies, joggers, and hats.
The fact that Amazon is now a Peloton partner does raise a few eyebrows. Amazon was among the many companies rumored to be in the running to buy Peloton at the height of its financial woes. The e-commerce giant also had its own debacle with an ill-fated Prime Bike, which was supposed to cost $500 via a partnership with Peloton rival Echelon. Amazon later denied any involvement. With this deal, it’s likely that Amazon gains valuable data about Peloton’s customer base and shipments — but at this point, Peloton probably views Amazon’s greater reach as a worthy tradeoff.
Since taking the helm in February, CEO Barry McCarthy hasn’t been shy about outlining his vision for reviving Peloton’s floundering finances. Last week, McCarthy also said Peloton is working on a DIY bike redesign, and at the company’s Q3 earnings in May, he noted that the company was exploring relationships with third-party retailers. And lo, this Amazon partnership delivers on both.
McCarthy also recently floated ideas of expanding the One Peloton Club leasing pilot, streaming Peloton classes to third-party equipment, reintroducing the recalled Tread Plus, and possibly launching its forthcoming rower in time for the holidays. Wall Street has generally been skeptical of Peloton’s fortunes, but the company’s stock shot up 18 percent following today’s news. That reversal could be short-lived, however — Peloton is scheduled to release its Q4 earnings tomorrow morning.