Peloton cut the price of its bike from hundreds of dollars to $ 1,495

Peloton cut the price of its bike from hundreds of dollars to $ 1,495

Carrie Gundy rides the Peloton exercise bike at her home on April 06, 2020 in San Anselmo, California.

Ezra Shaw | Getty Images

Peloton said it was slashing the price of its cheaper bike machine by about 20% to $ 1,495 starting Thursday.

This is the second time that Peloton has lowered the price of its original bike. When the company launched its Bike + Machine last September at $ 2,495, it slashed the price of the original Peloton bike from $ 2,245 to $ 1,895.

Prices will also be reduced in the UK, Canada, Germany and Australia, the company said in a blog post on its website.

After a recall and redesign, Peloton will begin selling a cheaper version of its treadmill, the Tread, next week.

Peloton also said it is offering new monthly financing options for its bikes + and treads, in an attempt to make the products more affordable.

Also on Thursday, Peloton released its fourth quarter financial results. It recorded more losses than expected as sales growth slowed significantly.

The home fitness equipment maker has seen incredible momentum during the COVID pandemic, boosting its sales and stock price. But some analysts and investors fear the momentum may wane as more consumers feel comfortable returning to the gym. Year over year, Peloton shares are down about 24%, bringing the company’s market cap to $ 34.2 billion.

Peloton is looking for ways to increase its revenue and find new customers. Its plans include expanding into new markets and adding additional home fitness products, one of which would be Rover. In June, Peloton launched a corporate wellness program.

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