According to a banner notice on its website, Peloton will charge customers a $250 delivery and setup fee on some of its bike models and a $350 delivery and setup fee for some of its treadmills.
With the added fees, prices for Peloton’s basic bike will increase to $1,745 from $1,495, and its basic treadmill will rise to $2,845 from $2,495, according to a report from The Wall Street Journal. The increases come as Peloton grapples with inflation and slowing demand for its in-home fitness equipment.
Last August, Peloton reduced the list price of its original stationary bike by 20 percent. In November, the company posted its smallest quarterly gain in subscriber growth since becoming a public company in September 2019 and indicated that fewer consumers were participating in its online workouts as activity increased in gyms and fitness centers.
According to a report Tuesday from CNBC, Peloton also retained consulting group McKinsey & Co. to review its cost structure and potentially eliminate jobs. The report indicated its apparel division might see expense cuts and 15 of its 123 global showrooms could close.
On a quarterly call in early November, CFO Jill Woodworth said Peloton was looking to cut overhead amid slowed growth.
Photo courtesy WSJ
