Peloton Just Made A Major Strategy Change With The Help Of Amazon

At-home fitness company Peloton has joined hands with Amazon to sell some of its exercise gear and apparel through the platform in the U.S., the company announced in a press release. The partnership with Amazon marks the first time Peloton will sell its exercise bike and related equipment outside of its own sales channels. Starting today, the original Peloton bike is up for grabs on Amazon, and it is joined by a wide variety of accessories, including things like the company's bike mat and cycling shoes.

Notably, the official press release doesn't mention the pricier Peloton Bike Plus and the Tread model, neither of which are currently present on the Peloton Amazon storefront. The Tread was recalled just over a year ago following a series of reports detailing serious injuries. Aside from the original Peloton Bike, the company's Amazon store also lists the camera-based Peloton Guide, Heart Rate Band, dumbbells, yoga blocks, and shoes. There is a separate section for branded apparel targeted at both men and women.

The Peloton Membership, which starts at $12.99, will continue to be sold via Peloton's own app and website. Interestingly, Peloton recently announced that it is working on a new generation of gear, including a bike, that will focus on at-home assembly by customers instead of relying on an expert. The idea sounds a lot like Ikea furniture, letting customers unbox and assemble their fitness machine using an instruction manual, a move that will cut down on costs for both parties.

Peloton is not in the best shape right now. In February 2022, the company lost CEO John Foley as part of a broad reorganization. The company announced a reduction in the size of its logistics team, cutting down on warehousing space, and winding down the development of its Peloton Output Park in Ohio. Following massive job cuts, Peloton's new CEO Barry McCarthy announced in August 2022 that retail showrooms will be shuttered in 2023, more jobs will be cut, and the prices of Bike Plus and Tread will be going up.

The collaboration with Amazon will save Peloton a lot of cash and the hassles that come with maintaining an in-house supply and sales channels. Aside from selling fitness hardware, Peloton also sells a subscription service akin to Apple Fitness+, but there is no word on whether there are plans of bundling it with a Prime subscription down the road. Regarding the partnership with Amazon, Peloton's Chief Commercial Officer Kevin Cornils notes that the company aims to "meet customers where they are, and they are shopping on Amazon."

Amazon, on the other hand, has been on a roll lately. In July 2022, Amazon forked out $4 billion to purchase One Medical, a company known for its subscription-based healthcare services. A month later, the company purchased iRobot, the maker of the popular Roomba series of robotic vacuum cleaners. Earlier this month, Bloomberg reported that Amazon is circling Signify Health, another health service provider, as well.