Peloton launches first-ever retail partnership with Amazon
A new collaboration will allow Peloton to expand its audience while Amazon adds to its product assortment.
Peloton Interactive Inc. is now making its core bike and other connected-fitness equipment, as well as select accessories and apparel, available for online purchase via Amazon in the U.S. Previously Peloton's products and accessories were sold exclusively, through the company's e-commerce site, inside sales channels and physical retail showrooms.
The deal comes as Peloton has been struggling to regain its pandemic-momentum as revenues have fallen along with COVID-19 restrictions and consumers return to out-of-home activities.The company posted losses of more than $1.2 billion in its most recent quarter as revenue plunged 28% to $678.7 million.
Peloton brought in Liz Coddington, who had been serving as VP of finance Amazon Web Services, as its new CFO in June. As reported by CNBC, in recent months, Peloton has had to lay off 2,800 employees and reduce ambitious sales projections.
Activist investor Blackwell Capital has also been pressuring Peloton to sell itself. The company named Barry McCarthy as its new CEO in February 2022, with founder and former CEO John Foley transitioning to the role of executive chairman.
"Expanding our distribution channels through Amazon is a natural extension of our business and an organic way to increase access to our brand," said Peloton chief commercial officer Kevin Cornils. "We want to meet consumers where they are, and they are shopping on Amazon. Providing additional opportunities to expose people to Peloton is a clear next step, as we continue to generate excitement for our unparalleled connected fitness experience."
Customers can search for the products on the Amazon site to see if they are available for purchase and delivery in their area. Shoppers will have the option to assemble Peloton bikes they purchase on Amazon themselves or to select an add-on expert assembly option available in the majority of the U.S. The in-home delivery and expert assembly are offered at no additional cost. See a full list of Peloton products being sold on Amazon here.
The deal with Peloton will allow Amazon to expand its product assortment in the exercise bike space with what is still a premier brand, but without having to take on any additional overhead. In a strange turn of events in September 2020, Amazon halted the sale of a Peloton-like“Prime Bike”which Echelon had been claiming it was jointly releasing and selling to Prime members with Amazon. Amazon denied any connection to the product.
"We are thrilled to have Peloton products available for our customers in Amazon stores," said Jim Adkins, VP of recreational and vocational categories at Amazon. "Peloton is all about bringing their community and energizing fitness routines into the home. With Amazon's convenient shopping experience, we hope to further that mission by providing customers with high quality, innovative products to take their health and fitness to the next level."
Founded in 2012, Peloton allows home users to have, essentially, the same type of experience that they would have at a spinning class. It sells a subscription service that gives the user (member) access to live and on-demand fitness group classes (along with archived ones), led by elite cycling instructors, via the Peloton Guide digital strength training device which features a built-in camera, movement tracker, and voice activation.
The guide device also provides performance tracking metrics and a real-time leaderboard designed to motivate users.