Peloton's connected Bike rentals are now available across 48 states
The news comes just as two co-founders leave the company.
Peloton is expanding a rental program for its Bike and Bike+ fitness equipment. Now, anyone in the contiguous US (sorry, Alaska and Hawaii) can try one of the connected exercise bikes at home without having to shell out at least $1,445. The company started testing the program in select markets earlier this year. It's worth noting that the rentals may still not be available in some remote locations.
A Bike rental costs $89 per month, while Bike+ costs $119 per month. You'll need to pay a $150 setup fee as well. Both options include an All Access Membership, which features Peloton's swathe of live and on-demand fitness classes. You can return the equipment for free at any time. After 12 months, you'll be able to buy the Bike or Bike+ at a reduced rate ($895 and $1,595, respectively).
News of broader availability of the rental program comes after it emerged that two of Peloton's co-founders are departing the company. As CNBC notes, John Foley is stepping down as executive chairman. Karen Boone will take over as the chair of the board. Chief legal officer Hisao Kushi, another co-founder, is leaving and will be replaced by Tammy Albarrán, Uber's chief deputy general counsel.
Additionally, chief commercial officer Kevin Cornils, who joined Peloton in 2018, will move on later this month amid a broader organizational shakeup. Chief strategy officer Dion Sanders will take on many of Cornils' duties in a new role as chief emerging business officer.
These executive changes are the latest developments in a turbulent year for Peloton as CEO Barry McCarthy tries to resolve the company's woes. Just as McCarthy took over the position from Foley earlier this year, Peloton laid off around 2,800 workers. In July, Peloton let go around 570 employees in Taiwan amid a shift away from in-house manufacturing, and last month, the company cut another 784 jobs in the distribution and customer service departments. It will rely on third-party companies for deliveries.
Whether McCarthy's ambitious plan to steady the Peloton ship pays off remains to be seen. It's been a rough year financially for the company to say the least. McCarthy told shareholders last month that, despite incurring an operating loss of $1.2 billion last quarter, he sees "significant progress driving our comeback and Peloton’s long-term resilience."
McCarthy said this week that Peloton would start selling its products in some brick-and-mortar stores after announcing the closure of many of the company's own retail locations. It recently listed its equipment on Amazon for the first time. McCarthy also mused on making it easier for people to access third-party content on Peloton's displays, something that's already possible to do by jailbreaking the device.
