Cari Gundee rides her Peloton exercise bike at home in San Anselmo, California on April 6, 2020.
Ezra Shaw | Getty Images
Peloton said it will cut the price of its cheaper bike machine by about 20% to $ 1,495 as of Thursday.
This is the second time Peloton has cut the price of its original bike. When the company launched its Bike + machine for $ 2,495 last September, it cut the price of the original Peloton bike from $ 2,245 to $ 1,895.
Prices will also be cut in the UK, Canada, Germany and Australia, the company said on a blog posted on its website.
After a recall and a redesign, Peloton will begin selling the cheaper version of its treadmill machine, the Tread, next week.
Peloton also said it is offering new monthly funding options for its Bike + and Tread in an attempt to make the products more affordable.
Peloton also released its fourth quarter results on Thursday. It posted an unexpectedly large loss as sales growth slowed dramatically.
The home fitness equipment maker saw incredible momentum during the Covid pandemic, causing its sales and stock prices to skyrocket. However, some analysts and investors fear the momentum will fade as more consumers feel comfortable returning to gyms. Since the start of the year, Peloton’s shares are down nearly 24%, bringing the company’s market cap to $ 34.2 billion.
Peloton is looking for ways to increase sales and find new customers. Plans include expanding into new markets and introducing additional fitness products for the home, one of which will be a rowing machine. In June, Peloton started a corporate wellness program.