Peloton expands treadmill lineup in bid to regain momentum
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Peloton is introducing three new treadmills, including its first folding model. Photo: Peloton
Peloton is debuting its first foldable treadmill — also its most affordable one ever — and new AI-powered coaching tools in a deeper push into running.
Why it matters: The fitness brand — which has been struggling to stem a slide in subscribers since its post-pandemic peak — wants to broaden its image beyond its trademark bikes and classes.
The latest: Peloton on Tuesday is introducing three new treadmills, all available in the U.S. beginning Oct. 1:
- Peloton Tread Flex: Its most affordable treadmill with a starting price of $2,195 and a foldable design.
- Peloton Tread Vision: With a starting price of $3,495, it features a "new cushioning system for greater comfort," plus a movement-tracking camera that "provides post-run form insights."
- Peloton Tread+ Vision: The ultra-premium model, priced at $6,695, offers an "incredibly soft, energy-returning slat belt" with AI-powered insights, via the movement-tracking camera, as well as a mode with resistance training.
The company is also expanding its Peloton IQ software system to deliver new AI-powered insights to its runners based on their cadence, vertical oscillation and stride length to help them improve their form and performance.
- The system can also recreate outdoor runs with treadmill inclines that mimic the actual route.
What they're saying: Peloton CEO Peter Stern tells Axios that the new products reflect the fact that "running is seeing a massive cultural boom and the treadmill remains the most popular piece of exercise equipment."
- "It's not just about equipment," Stern says. "It's also this intuitive AI-powered software. It is human-instructed coaching that's really fun. And then we also have a community that's there to support you."
State of play: Peloton is trying to reignite interest in its products and services amid a protracted decline in memberships.
- The company has lost about half a million paid subscribers over the last three years.
- In its latest quarter, paid connected fitness subs fell 8.8% to 2.55 million, compared with a year earlier.
Stern said Peloton has an opportunity to attract more cost-conscious consumers with the Peloton Tread Flex, its first treadmill under $3,000.
- "It allows us to go after more market segments for our really valuable subscription experience than we've ever been able to go after in the treadmill market," he said.
By the numbers: Peloton's shares are down 97% from their all-time high in early 2021, but the company is still "operating from a position of strength" given its low debt levels and its cash position, notes UBS analyst Arpine Kocharyan.
- The company has about $1.2 billion in cash-on-hand, Kocharyan notes — which is more than double its market cap.
The bottom line: If Peloton gets its way, biking will only be part of the company's identity.
