Multiple news sources report that Peloton, the fitness giant known for luxury in-home stationary bikes and related exercise classes, has quietly removed its unlimited free membership option on its app that was originally intended to capture new customers who may have been intrigued by the brand but weren’t willing to spend thousands on its equipment.
CNBC reports that the option, which was designed to supplement a user’s current workout routine or serve as a sampler for Peloton’s offerings, was removed a few weeks ago. It provided more than 50 classes curated across 12 of Peloton’s modalities and enabled users to pair workouts to meet their individual needs. Peloton told CNBC that people who signed up for the company’s unlimited free membership before it was removed will continue to have access to it.
The only options left for users who want to work out using Peloton’s app are a $12.99-a-month tier or a $24-a-month tier. There is also a seven-day free trial.
Total Retail’s Take: Peloton took on a rebranding initiative last year in an effort to become known for more than just its at-home bikes, which cost between $1,400 and $2,400 and don’t include a membership. The membership provides live and on-demand classes, workout metrics, training programs, gamified workouts, and more. The rebrand was done “to reflect everything Peloton has to offer to everyone, at any level, wherever they are,” according to a press release.
CNBC reported that Peloton CEO Barry McCarthy told investors in November that the relaunch had been “less successful at engaging and retaining free users and converting them to paying memberships” than the company had expected. Liz Coddington, Peloton’s chief financial officer, said during a Morgan Stanley conference in March that Peloton “quickly” learned that the free tier was “cannibalizing” efforts to convert free-trial members into paid subscribers, according to CNBC.
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