Peloton is trialing a new pricing system and has expanded its senior leadership. The changes were introduced one month after new CEO and President Barry McCarthy took over to lead the company following a difficult 2021. The company’s shares are down more than 80% over the last 12 months and fell 3.91% on March 10, closing at $22.61.
On March 11, Peloton introduced a new pricing model for its workout equipment and on-demand classes as a new offering named One Peloton Club, under which customers will pay a single monthly fee for rental of its Original Peloton Bike. Peloton is testing the new structure at select locations in Texas, Florida, Minnesota and Colorado, and monthly fees range from $60 to $100, CNBC reported. The trial is available only through Peloton’s brick-and-mortar locations and fitness studios, not online. Because Peloton will take back the bikes of customers who cancel, the offer is limited to those living within a 30-mile radius of the nine participating stores.
Standard monthly pricing for Peloton’s equipment currently begins at $45 for the Peloton Bike, $59 for the Peloton Bike+ and $67 for the Peloton Tread with a separate cost for All-Access Membership. Following a 30-day free trial, the Peloton App costs $12.99 per month for new members.
Peloton also has hired Andrew Rendich as Chief Supply Chain Officer and appointed Shari Eaton to the role of Chief People Officer.
As the CSCO at Peloton, Rendich will manage supply chain, distribution, member support and information technology. His 30-year career includes a focus on supply chain, operations, customer service and technology, and previous roles include serving as COO of Grove Collaborative — where he will remain in an advisory capacity— Eat Just, Good Eggs, Walmart and Netflix, where McCarthy served as CFO.
“Andy deeply understands how to run and execute a subscription model business,” said McCarthy in a statement. “He has always put the customer first while delivering an excellent experience, a superpower that is central to Peloton’s members-first mentality.”
Eaton has spent nearly three years with the company, most recently as Peloton’s SVP and Global Head of People. Reporting to McCarthy, Eaton will oversee global end-to-end Peloton People operations, including talent acquisition, people experience and development, total rewards and benefits, people business partnerships, people operations, and safety and security.