(Reuters) – Peloton Interactive Inc said on Thursday it would explore various pricing models in select U.S. markets, as the exercise bike company looks to attract more customers and return to profitability.
Peloton, which saw its shares tumble more than 80% in the past year due to waning demand for the company’s stay-at-home exercise equipment, is looking to revitalize sagging sales and win back investor confidence.
The company said it has created a limited pilot program to explore pricing and options for new members, but did not reveal details about the plan.
According to the Wall Street Journal, which first reported the move, select Peloton stores in Texas, Florida, Minnesota and Denver will offer a bike and subscription to workout courses at a price between $60 and $100 a month for a limited period from Friday.
Shares of Peloton were down about 2% before the bell.
The pricing experiment aims to find a price proposition helping the company return to profitability without hampering growth, the report said.
Upon cancellation, the company will take back the bike with no charge, the WSJ reported.
Last month, the company reported a bigger-than-expected quarterly loss and slashed its forecast for full-year revenue, saying the lowered outlook was to adjust to changes in demand brought on by the reopening of economies.
Barry McCarthy, who took over as the company’s chief executive last month, told the WSJ that he plans to reshape his executive team, consider manufacturing simpler bikes, and upend the company’s capital spending strategy. https://on.wsj.com/3tODrSM
The former chief financial officer of Spotify Technology SA and Netflix Inc also told the newspaper Peloton will boost spending on improving its digital interface and content options, rather than investing primarily in bikes, treadmills and other equipment.
(Reporting by Aishwarya Nair and Nilanjana Basu in Bengaluru; Editing by Maju Samuel)
