Peloton cuts price of its original bike by $400 amid poor profit results

platoon has lowered the price of his original bike by $400, making it $1,495. This price cut comes along with the company’s 2021 financial earnings, which showed that the company grew less than expected and lost more than it forecasted (via CNBC). The company reports that it had a net loss of just over $313 million in the fourth quarter of fiscal 2021.

While the company’s financial results certainly give it a reason to want to boost growth, this isn’t the first price drop for the original Peloton Bike. The previous price of $1,895 was the result of a price drop that happened alongside the Bike Plus’s introduction last September, taking it from its original $2,245 price tag.

Peloton’s blog post on Wednesday’s price drop, it spins in a different way, saying that the price drop is a way to allow more people into the Peloton community, lowering the barrier to entry. Of course, the bike is at its best with a $40-a-month Peloton membership — the more bikes Peloton sells, the more memberships it’s likely to get. Considering that subscription profit is one of the places where the company is successful (Peloton reports 158.9 percent year-over-year growth in subscription gross profit for the fourth quarter), it’s likely that the company wants to continue riding that high. .

This news also comes as Peloton gears up to relaunch its lower-cost treadmill (aptly named the Tread) in late August. When it was first announced, the $2,495 Tread was supposed to fit under the more expensive Tread Plus, though Peloton doesn’t currently sell that model due to a recall that stemmed from a series of injuries and one death. The Tread Plus recall, as well as the separate recall that delayed the launch of the Tread, are: quoted by CNBC and Peloton as one of the reasons for the company’s financial troubles in the past quarter.

Peloton may also have new products on the horizon to match its bikes and treadmills — it looks like the company is finally working on its long-rumored rowing machine, and there are rumors it’s working on a heart rate monitoring bracelet.

If the bike’s drop in price has intrigued you, you can read our review of it here.