Peloton, manufacturer of luxury fitness equipment, including bikes and treadmills, will start charging customers an additional $250 over retail price for in-home delivery and setup of its Bike, and $350 for its Tread, the New York Post reported on Tuesday, Jan. 18. The added charge will begin on Jan. 31, according to the report.
The Peloton Bike currently costs $1,495, while the new Peloton Bike+ costs $2,495, according to a review from The New York Times Wirecutter site. Those who want to maximize the features of the at-home fitness equipment will also want to subscribe to the membership at $39 per month.
The charge for delivery and setup comes amidst financial struggles for the manufacturer, although the company cited inflation and supply chain struggles as the reason for the charges. The company hired consulting firm McKinsey & Co. to evaluate Peloton. As a result, Peloton is considering closing 15 showrooms across the U.S., Canada, the U.K. and Germany, and slashing jobs within its apparel division, CNBC reported. Peloton currently operates 123 showrooms across the two continents.
Chief financial officer Jill Woodworth had previously said Peloton was looking to cut costs. “Some of these identified areas of savings include making significant adjustments to our hiring plans across the company, optimizing marketing spend and limiting showroom development,” she had told CNBC.
The company has been in a hiring freeze since November and does not expect to be profitable again until 2023, CNBC reported.
A Peloton employee spoke to CNBC on Tuesday under the condition of anonymity. “Morale is at an all-time low. The company is spinning out so fast.”
Amidst the news, Peloton stock dove 3.51% for the day to close at $30.23. It’s a stark contrast from its 52-week high when the stock reached $166.57 during the pandemic-related shutdowns of gyms and other businesses.
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