Peloton Steps Up Gym Rivalry With Corporate-Employee Discounts
(Bloomberg) -- Peloton Interactive Inc. is entering the corporate wellness business, launching a discount program for company employees much like gyms have offered for years.
The initiative announced Tuesday will see Peloton work with companies to offer their employees reduced-price or free subscriptions to its digital workout app, or special prices on Peloton bikes and treadmills. Peloton is also introducing a platform that will allow businesses to manage the program for their workers and features that will allow exercisers to invite others to join a class, a run or a ride.
The New York-based fitness company became one of the essential items during the pandemic, providing cooped-up exercise fans ways to stay fit from home during lockdown. Now that many companies are encouraging their workers to come back to the office, the offer could help attract and retain staff that has become comfortable with their home routine.
New York-based Peloton said it has already reached corporate-wellness deals with Samsung Electronics Co., SAP SE, Accenture Interactive, Sky Ltd., and Wayfair Inc. Corporate partners will subsidize the discounts for their employees, and such a program is likely to be a new revenue generator for Peloton. The company has more than 5.4 million members, but its hardware is expensive, starting at $1,895 for a bike and $2,495 for a treadmill. Most people buy just one machine and then pay subscription fees of $12.99 or $39 a month for access to workouts.
Peloton’s shares rose 4% on Tuesday in New York. The stock has declined about 25% this year in part after a series of accidents involving the treadmill and a recall.
The new program will start in the U.S., the U.K., Canada and Germany and will add Australia later this year.
©2021 Bloomberg L.P.