Peloton Relaunches Gear with AI Features to Revive Growth

Peloton is reintroducing its product line with a strong emphasis on artificial intelligence, aiming to reinvigorate the brand and boost growth. On Wednesday, the fitness company launched five new products, including an updated base bike, “plus” versions of its bike and treadmill, and a new rowing machine. Each model now features a swiveling screen for strength, yoga, and other classes, along with enhanced speakers, improved Wi-Fi, and a more comfortable bike seat to address previous user feedback.

The “plus” models incorporate Peloton IQ, an AI-driven feature designed to act like a personal trainer. Peloton IQ offers real-time feedback on form, counts reps, and provides tailored recommendations for weights and workout plans. This is the company’s latest attempt to integrate AI more deeply into its fitness offerings, building on lessons from its earlier $495 Peloton Guide camera, which is no longer available.

Pricing and Availability

The relaunch brings notable price increases. The base Bike now starts at $1,695, up $150, while the Bike+ is $2,695, a $200 increase. Treadmill prices have also risen, with the standard Tread now $3,295 and Tread+ at $6,695. Monthly membership fees have increased for the first time in three years, now set at $49.99.

These new models are available on Peloton’s website, with select items sold through Amazon and Dick’s Sporting Goods. Chief Product Officer Nick Caldwell believes the revamped lineup will attract new users due to the meaningful differences from prior versions. “A lot of people still think of us as a bike company, even though our number-two modality is strength,” he said, highlighting the company’s effort to position itself as a multi-modality fitness provider.

Leadership, Strategy, and Challenges

This relaunch marks the first major initiative under CEO Peter Stern, a former Ford and Apple executive tasked with transforming Peloton’s fortunes. The company has struggled since the pandemic boom, with shares losing more than 90% of their peak value. Stern is expanding Peloton’s focus beyond cardio, targeting a broader audience ahead of the holiday season.

Stern has implemented cost-cutting measures, including a 6% workforce reduction and a $100 million savings plan, intended to fund new strength and wellness offerings. He follows former executives Barry McCarthy and John Foley, whose leadership periods were marked by high-profile layoffs, price hikes, and product redesigns.

Despite the challenges, analysts remain cautiously optimistic. Brian Nagel of Oppenheimer stated, “We look favorably upon efforts on the part of new senior leadership at Peloton to reinvigorate the brand and cater to a wider array of target consumers.” He added that while risks remain, there is potential for a better-managed Peloton to reclaim a significant niche in the fitness market.

Past recalls also shadow the company’s history, including a 2023 Consumer Product Safety Commission fine of $19 million over 125,000 unsafe treadmills. Peloton hopes that its new AI-enhanced lineup, combined with a forthcoming marketing campaign, will overcome previous setbacks and reestablish the brand in the competitive fitness space.