Peloton jacking up prices for original Bike, Tread as inflation accelerates
New delivery and setup fees will bring Bike and Tread costs to $1,745 and $2,845, respectively
Inflation will be 'multi-year trend': VanEck CEO
VanEck CEO Jan van Eck says the era of attractively priced goods and services is over.
Peloton customers will start paying more for the fitness company's original Bike and Tread products at the end of the month.
INSIDE A YEAR AT PELOTON: FROM PANDEMIC WINNER TO HBO PUNCHLINE
Beginning Jan. 31, Peloton will charge a $250 delivery and setup fee for its original Bike and a $350 delivery and setup fee for its original Tread, according to a banner on its website. The delivery and setup fees were previously included with purchase of the machines.
The increases will bring the costs of the machines to $1,745 and $2,845, respectively. Financing options will be available for eligible customers starting as low as $67 per month over 43 months at 0% APR. Additional delivery fees may apply outside of the continental United States.
Beginning Jan. 31, Peloton will charge an additional $250 for delivery and setup for its Bike and an additional $350 for its Tread, according to its website.
The price hike comes as inflation accelerated at the fastest pace since 1982 with the consumer price index surging 7% year-over-year in December.
CLICK HERE TO READ MORE ON FOX BUSINESS
In August, Peloton reduced the price of its original Bike to $1,495. It also launched a redesigned Tread priced at $2,495 following a voluntary recall of Tread and Tread+ machines due to reports of a child's death and dozens of other injuries.
In November, the company slashed its full-year guidance for 2022 due to a "softer than anticipated" start to the second quarter and "challenged visibility" in its near-term operating performance as a result of uncertainty related to the COVID-19 pandemic.
Peloton is forecasting $4.4 billion to $4.8 billion in total revenue for fiscal year 2022, down from previous guidance of $5.4 billion. The company anticipates Connected Fitness subscriptions will grow to somewhere between 3.35 million and 3.45 million for the full year.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| PTON | PELOTON INTERACTIVE INC. | 3.46 | +0.09 | +2.67% |
| ODFL | OLD DOMINION FREIGHT LINE INC. | 176.04 | +1.19 | +0.68% |
On Jan. 24, Peloton stock will be replaced in the Nasdaq 100 index by Old Dominion Freight Line. Peloton shares have fallen more than 70% in the past six months and are down more than 10% so far in 2022.