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Peloton expands bike rental program nationwide

A Peloton stationary bike goes on sale at the company’s showroom in Dedham, Massachusetts, U.S., on Wednesday, February 3, 2021.

Adam Glanzman | Bloomberg | beautiful pictures

Peloton will expand the rental program nationwide, the company said Tuesday.

The announcement came a day after Peloton announced sweeping leadership changesincluding the departures of co-founder, executive chairman and former chief executive officer John Foley as well as co-founder and chief legal officer Hisao Kushi.

The rental program has begun in pilot markets at Peloton physical store locations in Texas, Florida, Minnesota, and Colorado. For $89 a month, customers get an original Peloton Bike and a membership. There is an additional $150 setup fee. They can also choose Bike+ for $119/month.

The rental program took place shortly after the company started selling certified pre-owned Bicycles and announced that Peloton will start selling products on Amazon. All of these moves are intended to increase bike accessibility, attracting new users to Peloton’s subscription base.

They are part of CEO Barry McCarthy’s plan for positive change. He took over the role from Foley earlier this year after The company has announced mass layoffs. Since then, McCarthy, a Netflix and Spotify veteran, It’s really amazing for a more subscriber-centric business model.

“I don’t think we’re a hardware company. We’re a software company. We’re in the engineering business to deliver great user experiences,” McCarthy said at the Goldman Sachs Communacopia and Technology conference. technology on Monday.

He added: “A very small percentage of the monetary value we collect from users that we collect when you buy a piece of hardware. Much of the lifetime value is accumulated monthly, monthly, monthly as a $44 worth of Subscription Fees.”

Shares of Peloton fell about 8% Tuesday morning amid broader market sentiment.

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