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{"id":12419,"date":"2022-08-16T14:38:47","date_gmt":"2022-08-16T14:38:47","guid":{"rendered":"https:\/\/scienceandnerds.com\/2022\/08\/16\/you-may-soon-have-to-assemble-your-own-peloton\/"},"modified":"2022-08-16T14:38:49","modified_gmt":"2022-08-16T14:38:49","slug":"you-may-soon-have-to-assemble-your-own-peloton","status":"publish","type":"post","link":"https:\/\/scienceandnerds.com\/2022\/08\/16\/you-may-soon-have-to-assemble-your-own-peloton\/","title":{"rendered":"You may soon have to assemble your own Peloton"},"content":{"rendered":"

Source: https:\/\/www.theverge.com\/2022\/8\/15\/23306646\/peloton-self-assembly-bikes-rower-barry-mccarthy<\/a>
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<\/br><\/code><\/p>\n

\n

Coming on the heels of a third round of layoffs<\/a>, Peloton is now considering redesigning its bikes so that users can assemble them independently. CEO Barry McCarthy is also considering a plan that would let Peloton app subscribers potentially view workouts on third-party workout machines. McCarthy told Bloomberg<\/em><\/a> that Peloton has been working on a bike redesign \u201cfor a while\u201d and, to top it all off, said he hopes Peloton\u2019s long-awaited rower<\/a> might debut sometime this holiday season. He also confirmed the company hasn\u2019t fully given up on the Tread Plus<\/a>. <\/p>\n

All of this tracks with comments McCarthy made in May during the company\u2019s Q3 2022 earnings<\/a>. At the time, he floated the idea of potentially changing hardware designs so that in the future Peloton equipment would be designed to arrive at a customer\u2019s home in one piece. Right now, Peloton\u2019s treadmills and bikes require white-glove delivery in separate pieces, with a crew that comes to your home and builds yours for you. The service used to be free, but Peloton began charging an additional $250\u2013$350 fee at the end of January.<\/p>\n

The move is part of Peloton\u2019s ongoing restructuring plan, which aims to reduce the company\u2019s costs and improve cash flow. On Friday, Peloton announced it was cutting more than 500 jobs<\/a> related to last-mile deliveries and product distribution. The company also noted it was raising the cost of its Bike Plus<\/a> and Tread<\/a> while shuttering retail locations in 2023. Making it so that customers can assemble their own equipment would mean the company can simply ship devices via FedEx \u2014 which is a move that rowing rival Hydrow recently implemented with its slimmer, smaller Hydrow Wave<\/a> rower. <\/p>\n

\n <\/p>\n

<\/p>\n\"Pelton<\/p>\n

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<\/span><\/p>\n

<\/span><\/p>\n

Peloton is mulling redesigning its hardware so that users can assemble its bikes themselves. <\/em><\/figcaption>Photo by Amelia Holowaty Krales \/ The Verge<\/cite><\/p>\n

<\/span><\/p>\n<\/figure>\n

Since taking over in February, McCarthy hasn\u2019t shied away from sharing novel ideas on how to turn around Peloton\u2019s flailing financial fortunes. Money saved from Friday\u2019s cost-cutting measures will purportedly be funneled back into Peloton\u2019s R&D as well as marketing efforts. That includes marketing Peloton\u2019s standalone app, which McCarthy identified as historically receiving little to no promotion. That dovetails with other plans the CEO divulged to Bloomberg<\/em>, including potentially allowing Peloton users to stream classes on third-party workout machines. McCarthy also noted the company may tweak the app\u2019s subscription strategy toward a \u201cfreemium\u201d model where some features aren\u2019t locked behind a paywall. <\/p>\n

That strategy is similar to what Apple currently does for its Fitness Plus<\/a> service, which doesn\u2019t require the use of an Apple-branded exercise machine. Instead, people can use their own devices to stream Fitness Plus classes while using rowers, treadmills, and bikes at their local gym. The main difference is that Apple still requires users to own a minimum of an Apple Watch and iPhone to access Fitness Plus. <\/p>\n

But while McCarthy seems keen to pivot toward services, it seems like hardware still has a role to play in Peloton\u2019s business. For instance, the company is gearing up to launch a rower, potentially this holiday season. The rower was perhaps the worst-kept secret in connected fitness until it was confirmed earlier this year<\/a> at Peloton\u2019s annual Homecoming event for subscribers. <\/p>\n

\n <\/p>\n

<\/p>\n\"\"<\/p>\n

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<\/span><\/p>\n

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The Tread Plus was recalled after causing several injuries, but Peloton hasn\u2019t given up on relaunching the product.<\/em><\/figcaption>Image: Peloton<\/cite><\/p>\n

<\/span><\/p>\n<\/figure>\n

More surprisingly, McCarthy hinted that the company was hoping to relaunch the Tread Plus, which was recalled last year<\/a> after causing several injuries and the death of a small child. While both its Tread and Tread Plus machines were recalled, the Tread was later approved for sale toward the end of 2021. The Tread Plus, however, remains out of circulation. In Q3, the company also noted that returns of the high-end treadmill were higher than anticipated, costing the company $18 million. According to McCarthy, relaunching the Tread Plus is entirely dependent on the government clearing it for sale. It\u2019s possible that while Peloton hasn\u2019t given up hope on the Tread Plus, it\u2019s not something that it\u2019s banking on either. On Friday, part of the rationale for hiking up the price of the \u201caffordable\u201d Tread by $800 was to position it as a superior device and boost Peloton\u2019s \u201cpremium\u201d image. <\/p>\n

Another interesting tidbit is that Peloton may be preparing to expand its One Peloton Club leasing pilot<\/a>. The program bundles together the cost of the bike and classes into a single $89 monthly fee. The pilot has thus far been successful for the company, with McCarthy saying in May that the program had \u201cmass market appeal\u201d as 53 percent of signups came from households with incomes under $100,000. <\/p>\n

Peloton is expected to hold its Q4 2022 earnings call later this month on August 25th, and we\u2019ll likely find out more about which plans will stick then. So far, Peloton\u2019s restructuring efforts have been off to a slow start, and Wall Street investors have seemed skeptical overall. <\/p>\n<\/div>\n


<\/br><\/code><\/p>\n

Source: https:\/\/www.theverge.com\/2022\/8\/15\/23306646\/peloton-self-assembly-bikes-rower-barry-mccarthy<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Source: Coming on the heels of a third round of layoffs, Peloton is now considering redesigning its bikes so that users can assemble them independently. CEO Barry McCarthy is also considering a plan that would let Peloton app subscribers potentially view workouts on third-party workout machines. 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