Peloton Interactive was on top of the world in the early days of the virus pandemic. Now the fitness equipment manufacturer is struggling to keep its business afloat, announced Monday it would begin to sell refurbished bikes for a discount.
Refurbished Peloton Bikes range between $1,145 to $1,995, which includes delivery and setup fees. That’s a $300 savings for the base Peloton Bike and $500 savings for Peloton Bike+.
Add refurbished bikes to Peloton’s lineup of attempting to turn the sinking ship around. The company recently announced a national rental program for both models of the bikes, allowing consumers month-to-month options rather than outright buying the bikes or financing.
The refurbished bikes come as the company faces several challenging quarters, even as it shifts its hardware-heavy focused business model to a subscription revenue one. It also faces a perfect storm of demand headwinds because the once insanely popular overpriced exercise bikes won’t likely ever experience 2020-21 demand again.
Shares of Peloton have crashed 75% this year as rational investors see no signs that demand trouble will abate anytime soon.
CEO Barry McCarthy, who took the helm earlier this year, recently said the company’s turnaround is a “work in progress.”