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Peloton is about to tack on hundreds of dollars in fees to its Bike and treadmill, citing inflation

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Peloton Interactive Inc. stationary bikes were on display at their showroom in New York City on Madison Avenue on Wednesday December 18, 2019.

Jeenah moon | Bloomberg | Getty Images

PelotonCustomers will soon be able to pay more for their original Bike and Tread products. This is due to rising inflation and increased supply chain costs.

The company will start charging customers an additional $250 for setup and delivery of its Bike and an additional $350 per Tread starting Jan. 31 according to an announcement on the website. These products will cost $1,745 to set up and $2,845, respectively.

Peloton stated previously that shipping and assembly fees were $250 and $350, respectively.

According to the company’s website, Peloton’s Bike+ new product is still available at $2,495.

Peloton Australia has similar messaging. It states that the costs of its services will increase starting Jan 31 in Australia, Germany, UK, and Germany.

Dara Treseder was the chief marketing officer and communications officer at Peloton. She stated during a meeting that these changes are due to increasing inflation and rising supply chain expenses.

People are increasing prices right now. Ikea has just increased prices. According to CNBC, Treseder stated that they want to be in the middle.

Elle said that she didn’t think the company wanted to appear as a “switch-and-bait” business.

CNBC received an email from a Peloton spokesperson stating that, “Like other businesses, Peloton’s being affected by global economic, supply chain and financial challenges that affect the majority of businesses globally.”

According to the spokesperson, “Even though these increase, we think we offer the best value connected fitness” and that consumers have many financing options making Peloton affordable for everyone.

Peloton was founded in August cut the price of its less expensive Bike product It hoped to attract more people with a lower price option, so it increased the range of prices by around 20% to $1495.

Peloton has seen a surge in demand for home workout equipment since 2020. However, its momentum seems to have slowed down in the recent months. The stock of the company has also taken a blow. After rising by more than 4440% in the previous year, shares fell around 76% in 2021.

This November: Peloton slashed its full-year outlookDue to supply chain restrictions and weakening demand. Analysts believe that the company will have experienced a lower holiday than expected, as well. prompt another cut to its annual guidance.

Nasdaq announced last Thursday that Peloton’s stock will be replaced by Old Dominion FreightThe Nasdaq 100 Index was launched Jan. 24, 2007.

This is a developing story. Stay tuned for new updates.

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