Peloton expands Bike rental program nationwide

Peloton volition grow its rental programme nationally, the institution said Tuesday.

The announcement came a time aft Peloton unveiled sweeping enactment changes, including the departure of co-founder, enforcement president and erstwhile CEO John Foley arsenic good arsenic co-founder and Chief Legal Officer Hisao Kushi.

The rental programme began successful trial markets astatine Peloton's carnal store locations successful Texas, Florida, Minnesota and Colorado. For $89 a month, customers volition get an archetypal Peloton Bike and a membership. There is an further $150 setup fee. They tin besides opt for the Bike+ for $119/month.

The rental programme comes soon aft the institution started selling certified pre-owned Bikes and the announcement that Peloton would statesman selling products connected Amazon. All of these moves enactment to summation motorcycle accessibility, attracting caller users to Peloton's subscriber base.

They're portion of CEO Barry McCarthy's assertive turnaround plan. He took implicit the relation from Foley aboriginal this twelvemonth aft the institution announced monolithic layoffs. Since then, McCarthy, a Netflix and Spotify veteran, has pushed for a much subscriber-centric concern model.

"I don't deliberation of america arsenic being a hardware company. We're a bundle company. We're successful the concern of engineering a large idiosyncratic experience," McCarthy said astatine the Goldman Sachs Communacopia and Technology league Monday.

He added: "A precise tiny percent of the monetary worth we cod from users we cod erstwhile you acquisition a portion of hardware. The immense bulk is the beingness worth that is accumulated period over, period over, period implicit period successful the signifier of the $44 worthy of subscription fee."

Shares of Peloton were down astir 8% Tuesday greeting amid a broader marketplace rout.