Peloton is hiking prices for its high-tech fitness bike and treadmill as inflation accelerates.
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Peloton is hiking prices for its fitness bike and treadmill by $250 and $350 respectively.
Delivery and setup were previously free with purchase, but customers will have to pay separately from January 31.
A Peloton spokesperson told CNBC it was being hit by “global economic and supply chain challenges.”
Peloton is adding extra costs to its high-tech fitness bike and treadmill as inflation bites.
Delivery and setup costs were previously included with the purchase of Peloton hardware, but customers will have to pay separately from the end of the month.
The connected-fitness company says on its website that Peloton Bike customers will have to pay a $250 fee and Peloton Tread customers a $350 fee for the services from January 31.
Peloton lowered the price of its Bike twice during the pandemic, and it currently costs $1,495. The more advanced Bike+ costs $2,495, and its Tread costs $2,495.
Peloton customers also have to pay separately to access on-demand content, which costs $39 a month.
A spokesperson for the company told CNBC: “Like many other businesses, Peloton is being impacted by global economic and supply chain challenges that are affecting the majority, if not all, businesses worldwide.”
Inflation accelerated in December to the fastest pace since 1982, with the Consumer Price Index surging 7% year-over-year. A shortage of workers, including more calling off sick with the coronavirus, rising demand for products, and port jams have wreaked havoc across the supply chain and led to spiraling inflation.
The Peloton spokesperson added that the company believed that it was still offering “the best value in connected fitness” even with the price increases, and said that customers could use various financing options.
Other companies have also raised their prices in response to higher costs, including Chipotle, Unilever, and Dollar Tree.
Peloton sales soared at the start of the pandemic as lockdown forced people to work out from home. But now, as gyms are reopening, the company’s sales are slumping and its stock price has plummeted.
Retail, News, Peloton, Bike, Connected Fitness, Exercise, Peloton Bike, Peloton Tread, inflation 2022
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