Peloton Launches New App, Says It’s More Than a Bike Brand

Chief Marketing Officer Leslie Berland told Barron’s the firm sees an opportunity to grow its membership base by ensuring consumers know the company is more than just its flagship at-home spin bike. She notes its stand-alone app had just 4% awareness, so the company can do a better job tackling the larger fitness app space.

“Obviously our content is best in class, our instructors are best in class,” she said. “We believe that with awareness and meeting people where they are, doing the right marketing and communication, and bringing this all to life, we will absolutely penetrate a much larger market segment for us.”

Peloton App Free will offer more than 50 classes across 12 categories including cycling, indoor and outdoor walking and running, strength, yoga, barre, and boxing.

Peloton App One will charge $12.99 a month or $129 a year for unlimited access to thousands of classes across nine of Peloton’s 16 categories. Subscribers can also take three hardware-based classes a month, such as bike, treadmill, or rowing classes.

Peloton App+ is $24 a month or $240 a year for everything in the lower tier, plus equipment-based cardio classes. Previously, the company only offered its rowing classes to connected fitness subscribers on their Peloton Row devices. Connected fitness subscribers pay $44 a month to access classes and features directly on Peloton equipment.

Berland was Twitter’s marketing head prior to Elon Musk’s takeover of the company. She said Peloton’s brand relaunch has been her priority and main focus since taking over in the role at Peloton in January.

“We see this as a reset moment,” Berland said. “And everything that we do builds from here, and we could not be more excited.”

Peloton stock initially rose on the news, though it closed down 1.1% to $7.25 on Tuesday, as the
Nasdaq Composite
fell 1.3%. Peloton stock is down 8.7% this year and 42% in the past 12 months.

Though pandemic lockdowns juiced demand for Peloton’s bikes, the boost proved temporary. Barry McCarthy took over as chief executive in February of last year as the company embarked on a turnaround plan. Under McCarthy, the firm has doubled down on its digital offerings. It has also tinkered with prices and rolled out a rental program. The app changes represent a major test for the firm’s turnaround efforts.

Write to Connor Smith at [email protected]