Peloton (NASDAQ: PTON) intends to expand its rental program throughout the country, it said Tuesday. The change comes just a day after the company revealed leadership updates, such as the exit of co-founder and former CEO John Foley as well as Chief Legal Officer Hisao Kushi.
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The rental program was introduced within test markets at Peloton physical store locations in Texas, Florida, Minnesota, and Colorado. Amid the month-to-month rental offering, Members will be given full access to Peloton’s library of live and on-demand classes, starting at USD89 per month for the original Peloton Bike. Additionally, there is a USD150 setup fee and customers can also opt for the Bike+ for another USD119 a month.
“As the global leader in the connected fitness space, we are committed to delivering convenient, engaging, and motivating workout experiences to a broad array of consumers who want to be the best version of themselves anytime, anywhere,” said Peloton’s Dara Treseder, SVP, Global Head of Marketing, Communications & Membership. “Our expanded national rental program allows even the most value-conscious customers to fully immerse in the Peloton experience.”
The moves are meant to increase Bike accessibility and attract new users to Peloton’s subscriber count. Ultimately, they are a part of CEO Barry McCarthy’s aggressive turnaround plan. McCarthy stepped into the position earlier this year after the company disclosed huge layoffs.
The American exercise equipment and media company fell approximately 14% Tuesday morning.