Peloton Testing New Rental Model Led by New CEO
Mar 10, 2022 By MarketDepth
Peloton (NASDAQ: PTON) is now testing a new rental model, its first critical strategy directed under newly appointed CEO Barry McCarthy. The action is intended to lure in new customers and increase the business’s profitability.
Rental Includes Product and Service
Starting Friday, select stores in Texas, Florida, Minnesota and Colorado will offer consumers a rental package that consists of both a bike and access to its streaming service for a monthly fee. Prices will vary between USD60 to USD100 a month and customers will be able to cancel their membership anytime and return the bike at no charge.
“Peloton has created a limited pilot program in select US markets to explore various pricing models and options for new members. This aligns with Peloton’s belief that intuition drives testing and data drives decision making as the company sets course for the next phase of its evolution and growth.”the company said in a statement
According to the company’s spokeswoman, Amelise Lane, Peloton has created the pilot in select markets within the United States as a means of analyzing prices and different options for incoming members. McCarthy stated that the trial could potentially reel in customers that are not keen on the product’s high price, and ultimately boost the company’s profits.
“There is no value in sitting around negotiating what the outcome will be. Let’s get in the market and let the customer tell us what works.”CEO Barry McCarthy