As it’s known that Peloton’s CEO hasn’t been open about his plans on how to keep the fitness firm sailing in struggling tides. McCarthy a few weeks ago turned down the sale rumours and instead mentioned the possibility of revising Peloton’s membership structures.
Speaking of the new subscription model, users would have to pay a one-time $60-$100 fee per month. This covers both the rental cost of the bike as well as the cost of lessons, according to a report by the Wall Street Journal. At any point in time, if the customer wishes to cancel the subscription, Peloton will take back the bike without charging a single penny.
As the model isn’t up for online sign-ups, customers must have to visit a local dealership nearby. In addition, this pilot will be available for a limited period and will be available in Texas, Florida, Minnesota, and Denver for selected dealerships. However, Peloton will charge a one-time delivery fee of $250 for certain regions.
Until now, users have had to buy the Bike and pay a separate $39 monthly subscription fee. If a customer were to use financing, that would mean a monthly payment of $45. And a combination of both these charges means a monthly bill of $84 until the bike was paid off. However, the new pilot offers, paying less each month to have the Bike at your place. The most affordable price for Peloton’s previous digital-only membership was $12.99 a month.
This rental doesn’t cover the buying price for your bike. But, Peloton states that similar to automobile leases, users can acquire the Bike at a “Buyout” price mentioned in the Club agreement.
In a statement to The Verge, Amelise Lane, a Peloton spokesman, said, “Peloton has developed a limited trial programme in certain U.S. locations to examine alternative pricing methods and possibilities for new members.”