work out woman in sand with smartphone

Peloton Testing Out Bundled Pricing as Company Looks for Boost



Aiming for More Subscribers

Interest in at-home workout solutions is cooling as the pandemic wanes. Peloton (PTON) currently has 6.6 million members, and the company is now tinkering with its pricing model in the hopes of attracting new customers. The firm’s competitors include Hydrow, Tonal, and Lululemon (LULU), which also offers equipment and on-demand classes.

Peloton hopes to build customer loyalty by offering integrated fitness solutions, with a range of connected options. The latest strategy involves bundling equipment purchases and subscriptions together as a package deal, in select markets.

Getting Financials into Shape

Barry McCarthy has been Peloton’s CEO for around one month. He’s looking to draw on his experience as an executive at Netflix (NFLX) and Spotify (SPOT) to guide Peloton to profitability. The company’s stock price has tumbled from its 2020 high-water mark, and is currently trading below its $29-per-share IPO price.

Peloton will now offer a bike-plus subscription package for $60-$100 per month. If customers want to cancel, they only need to cover the bike’s delivery fee. These terms leave some industry analysts wondering if the strategy will just add to the company’s woes by making it too easy for customers to quit. Peloton’s churn rate in the latest period has been relatively low, coming in at just 0.79% per month.

More Fitness Options at a Lower Cost

Consumers who live in Texas, Florida, Minnesota, and Colorado will be able to take advantage of the pilot program. The workout equipment and access to a variety of on-demand fitness classes such as cycling and yoga will be included in the monthly fee.

Analysts suggest the sector could soon begin offering equipment options going beyond just bicycles. For example, Peloton plans to add a rowing machine and other cardio options to its lineup. Getting fit may become less expensive, customized, and accessible as the market evolves and competition heats up.

Things are changing daily within the financial world. Sign up for the SoFi Daily Newsletter to get the latest news updates in your inbox every weekday.

Sign up


Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
SOSS22031102


All your finances.
All in one app.

SoFi QR code, Download now, scan this with your phone’s camera

All your finances.
All in one app.

App Store rating

SoFi iOS App, Download on the App Store SoFi Android App, Get it on Google Play

ABOUT Meg Richardson Meg Richardson is a writer specializing in markets, technology, and personal finance. She loves breaking down seemingly complex ideas and making them readable and interesting for everyone. She holds an MFA in writing from Columbia University. When she is not writing about finance, she enjoys running in Central Park and drawing cartoons.


TLS 1.2 Encrypted
Equal Housing Lender