Peloton is testing a new rental model, marking the fitness company’s first significant strategy change under newly installed CEO Barry McCarthy. Beginning Friday, some stores in Texas, Florida, Minnesota, and Colorado will offer customers a rental package covering both a bike and access to its streaming service for one monthly fee. Prices will range between $60 and $100 a month, and customers can cancel anytime and return the bike without charge.
Peloton has created a limited pilot program in select US markets to explore various pricing models and options for new members. This aligns with Peloton belief that intuition drives testing and data drives decision making as the company sets course for the next phase of its evolution and growth.
In January, Peloton announced drastic changes and laid off about 2,800 employees, including 20% of its corporate positions. The company is also reducing the number of warehouses it operates and expanding delivery agreements with third-party providers, a move that will help save $800 million in annual costs. shares have plunged more than 80% from their high in January 2021.