Peloton made changes to its pricing structure as the on-demand fitness class and home-equipment company raised pricing for its All-Access membership. Beginning June 1, 2022, Peloton’s monthly North America All-Access membership fee will increase to $44 from $39 in the U.S. and $55 from $49 in Canada. Pricing for international memberships in other areas of the world will not change. The Peloton app subscription for members who do not use company equipment will remain $12.99 per month.
The company noted that it has not implemented a price increase in North America in eight years, despite improvements such as the expansion of its product offerings, content languages, disciplines, classes, music, instructors and programming. Peloton also noted its addition of new features across its Peloton Bike, Tread and Guide products.
Members are also engaging more with the company’s offerings. Between the period of October-December 2014 and October-December 2021, monthly workouts per All-Access Membership more than tripled from 4.4 to 15.5.
Prices for Peloton bikes and treadmills will decrease in all markets. According to the company, this move is an effort to make Peloton products more accessible and increase its reach. On April 14, 2022, Peloton decreased the cost of its:
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- Bike from $1,495 to $1,195 with a $250 delivery and setup fee;
- Bike+ from $2,495 to $1,995; and
- Treadmill from $2,495 to $2,345 with a $350 delivery and setup fee.
“We want more people to be able to afford our hardware,” the company said in a press release. “This is a strategic decision to play for scale and increase market share.”
In March, Peloton began trialing a new pricing system named One Peloton Club. The fresh offering for equipment and on-demand classes centered on a monthly equipment rental model across Texas, Florida, Minnesota and Colorado. Fees ranged from $60 to $100, with the offer only available at Peloton brick-and-mortar locations and fitness studios, and only to those customers who lived within a 30-mile radius of the nine participating stores. The company has since expanded the test and added Bike+ to the rental options.
The recent changes are part of continued efforts by Peloton President and CEO Barry McCarthy, who joined the company in February 2022. Upon joining the company, McCarthy immediately sought to reduce costs through reaching at least $800 million in annual run-rate cost savings and reducing 2022 planned capital expenditures by approximately $150 million. Peloton also plans to cut approximately 2,800 jobs across the company globally.
“We have an unwavering commitment to deliver the best connected-fitness experience anytime, anywhere,” said the company. “The pricing changes we are announcing today are part of our new CEO Barry McCarthy’s vision to grow our community as we continue to deliver for our members and shareholders as the leading global connected fitness platform.”
