New York (CNN Business)Peloton is cutting the price of its original at-home exercise bike for the second time in a year, a sign that the trendy fitness company is facing fiercer competition from rivals producing significantly cheaper products and people returning to gyms.
Beginning Thursday, its core bike will cost $1,495 — a roughly 20% reduction — with the monthly financing rate dropping $10 to $39 a month. Peloton said in a press release that the price cut is part of its mission to making the company's products "more accessible and attainable."
Peloton also announced new financing terms for its recently released Tread and pricier Bike+ with the monthly prices dropping by several dollars and the company offering 0% APR. Peloton (PTON) previously cut the price of the Bike by 15% to $1,895 in September 2020.
The Peloton Bike is getting a price cut.
Peloton CEO John Foley recently said that the price cuts and introduction of cheaper machines, such as the Tread, is aimed at attracting new members that might think it's just for the wealthy. The company is also growing its app membership base, which feature workouts that don't need Peloton machines, with price reductions for qualified people and star-studded classes.
Peloton stock dropped 15% after hours Thursday and shares of the company are down about 20% this year. Investors have soured on the company in light of the massive recall surrounding its treadmill and delivery delays. The company also posted disappointing earnings and an underwhelming outlook.
