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Peloton’s stock price soared an eye-popping 20% on Wednesday afternoon after the exercise equipment company announced that it would sell its brand of bikes on Amazon.
The fitness firm announced that it was branching out beyond its bread-and-butter direct-to-consumer business model and will for the first time be peddling its wares through the e-commerce giant.
Now customers can shop for Peloton’s interactive Bike as well as accessories such as the Guide, the built-in camera which allows instructors to see how the client is exercising.
The Bike, which is fitted with a 22-inch HD touchscreen, is currently available on Amazon for $1,445.
The AI-enabled Guide will also set one back $295.
Through Peloton’s partnership with Amazon, customers can also browse options such as cycling shoes, heart rate bands, bike and workout mats, dumbells, water bottles, and yoga-related accessories.
Kevin Cornils, Peloton’s chief operating officer, said that before the announcement there was considerable interest in Peloton products on Amazon even though they were unavailable through the site.
“Post-Covid, the retail environment — online and in stores — is continuing to evolve, and that’s something that we’re trying to understand better to make sure the Peloton of the future is calibrated appropriately for that,” Cornils told CNBC.
“We want to make it as easy as possible to get a Peloton.”
Peloton has experienced a roller coaster period during which its market capitalization soared to as much as $50 billion during the height of COVID-19 lockdowns — only to crash after people started leaving their homes following the mass vaccination drive.
As of Tuesday, Peloton’s stock price shrunk by some 70% compared to a year ago.
In February, John Foley resigned as CEO — a casualty of mounting losses and escalating costs.
As part of its $800 million restructuring, Peloton stopped all of its in-house manufacturing and started testing a subscription model for its equipment in hopes of diversifying its revenue streams.
The company has also had to resort to layoffs, store closures, and price hikes in a bid to boost earnings.
Barry McCarthy, the new CEO, has indicated he wants Peloton to hit 100 million paid subscribers.
Last quarter, the company reported 7 million members.