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.
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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.
