Peloton debuts AI coaching and new products in sweeping overhaul
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Peloton is introducing AI-powered personal coaching. Photos: Peloton
Peloton is rolling out a slew of new features, including improved fitness equipment, and introducing "AI-powered personal coaching."
Why it matters: Peloton is hoping to recapture the momentum it lost after the pandemic, when investors flocked to stay-at-home stocks.
Driving the news: The fitness company announced on Wednesday morning a sweeping overhaul of its product lineup, including:
- A new Cross Training Series of its signature products — including Bike, Bike+, Tread, Tread+ and Row+ — with swivel screens and upgraded wireless connectivity.
- A movement-tracking camera that enables AI-powered feedback on exercise form and reps.
- Voice-activated controls for adjusting certain settings.
- A cushier cushion for the Bike and Bike+.
Zoom in: Peloton introduced Peloton IQ, calling it a "computer vision system that provides personalized guidance," including personalized workout advice and analysis.
- Still, the company's services will "absolutely" always be centered around human instructors, CEO Peter Stern tells Axios.
- "That connection with our trusted people is one of the things that makes us so special," Stern says. "The way we use AI is basically to amplify and augment what our instructors can do."
By the numbers: The new features come with membership price increases.
- Peloton's All-Access Membership goes from $44 to $49.99, while its App+ Membership goes from $24 to $28.99, and its App One Membership goes $12.99 to $15.99.
- Prices on the new machines: $1,695 for Cross Training Bike, $2,695 for Cross Training Bike+, $3,295 for Cross Training Tread, $6,695 for Cross Training Tread+ and $3,495 for Cross Training Row+.
The big picture: The announcement shows how Stern is trying to put his stamp on Peloton after joining the company in January following stints with Apple and Ford Motor.
- Peloton is under pressure to stabilize its subscriber base, which is expected to fall by 5% in the 2026 fiscal year based on consensus estimates, according to UBS analyst Arpiné Kocharyan.
- Its stock is down more than 94% from its all-time high close of nearly $163 in December 2020.
After taking over, Stern moved quickly to cut costs and refocus Peloton on its products and services.
- For example, "we need to have a payroll department that's competent enough to actually cut the checks, but we don't need to be the best in the world at payroll. We just have to be good enough," he said.
What's next: Stern says he's eyeing an opportunity to grow globally beyond the company's current six markets.
- The company is also opening eight new "microstores" by the end of October and partnering with Johnson Health to sell Bikes and Treads in more than 100 stores.
