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Fitness and exercise bike brand Peloton (PTON, $13.48) has struck a deal with Amazon (AMZN, $133.80). The partnership sees the former sell its fitness equipment and apparel on the platform in a bit to broaden its customer base and win back investor confidence after the brand's stock plunged from the dizzying highs of the pandemic.
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From Wednesday, US customers were able to purchase a selection of its fitness equipment and accessories on the e-commerce giant‘s website. Products available include the original Peloton Bike, which retails for $1,445 and its best-selling strength product Peloton Guide, which costs $295. The popular Bike+ and Tread treadmill machines will not be available on Amazon, to begin with.
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Peloton announced plans this month to raise the prices of some products and slash roughly 784 jobs by closing stores and eliminating its warehouses. The move was a part of an $800 million cost-cutting strategy by the company’s new chief executive, Barry McCarthy.
Why it matters
Peloton, a winner in the early months of the pandemic as people were stuck in their homes, has struggled since Covid-19 restrictions have eased and people have begun to feel more comfortable returning to gyms. On the backdrop of this in May, Peloton said its revenue fell 24% in its first quarter from a year earlier, to $964 million. It also announced a series of cost-cutting initiatives such as moving manufacturing and job cuts.
