Companies are expanding their horizons to narrow the gap between consumers’ needs and products. In one such attempt, Peloton is expanding its bike rental program nationally.
The company announced on Tuesday. The company makes several revelations one after the other in a statement. It informs about leadership changes. The company talks about the departure of the executive chairman and former CEO. Hisao Kushi, the Co-founder and Chief Legal Officer will also be leaving the company.
In the same queue, the company informs us about the rental program expansion. Peloton’s physical stores in Texas, Florida, Minnesota, and Colorado are already testing the viability of the project.
Customers can rent an original Peloton Bike for $89 a month. This offer also contains a membership. There is a $150 setup fee. However, they can also opt for the Bike for $119 monthly.
The company, apart from the rental program, also sells certified pre-owned bikes. Earlier, the company announced That Peloton would sell products on Amazon. This move is attracting new users and also increasing the subscriber base.
Barry McCarthy is now the new CEO of the company. These transformational changes are happening in his leadership. The rental program is already receiving a huge response in the market.
The company now aims to engineer a great user experience. The company informs that it receives a small profit from hardware products. The company sees profit in the other vertices. The subscription program and rental programs are profitable for the company.
With a good product review, the company aims to build good brand value. Share of Peloton closes down around 10% amid a broader market. The company now expects better.
Peloton informs that the base-level bike subscription will cost the customer just $89. It has room for a monthly subscription also. These policies seem consumer-inclusive. Hence the rental program might become a huge success.
Its customer base is already strong in some sites around the world. We expect a similar response from other parts. The rental program promises accessibility.