Peloton Puts the Brakes on Bike Production

Peloton is temporary shutting down production of its connected fitness Bike for two months in an effort to cut costs amid dwindling consumer demand.

As CNBC reported Thursday (Jan. 20), the fitness brand will halt production on its Bike from February through March. The network, citing internal company documents, said Peloton had already shut down production of its more pricey Bike+ and will cease making its Tread treadmill for six weeks starting in February.

In a confidential presentation Jan. 10, the company said demand for its connected fitness equipment has seen a “significant reduction,” fueled by consumer price sensitivity and increased competitor activity. Earlier this week, the company announced it was raising prices for delivery and assembly on its Bike and Tread products at the end of this month, due to inflation and rising supply chain costs.

See also: Peloton Prices Will Rise 15% as Connected Fitness Firm Ends Free Delivery and Assembly

Those added fees — $250 for Bikes, $350 for Treads — will up the prices for the two devices to $1,745 and $2,845, respectively, according to the report. Peloton had previously included the delivery and assembly cost in the total price of the products.

“Right now, people are raising prices,” Peloton Chief Marketing and Communications Officer Dara Treseder said in a recent company meeting. “Ikea just raised prices. We want to go in the middle of the pack.”

This news is the latest in a series of setbacks for Peloton. Last year saw the company face a series of challenges that caused its value to drop by more than 70%.

Read more: ‘And Just Like That’, Peloton Ups Its Brand Protection Game With Viral Chris Noth Ad

In December, Peloton was saddled with some unfortunate product placement when the “Sex in the City” sequel series “And Just Like That” included a scene in which Chris Noth’s “Mr. Big” died after exercising on a Peleton bike. The same week, another HBO series, “Curb Your Enthusiasm,” also debuted an episode in which series creator and star Larry David sustained an unfortunate Peleton-related injury.

While Peleton was initially able to make lemonade from lemons by running an ad in which Noth extolled the benefits of its products, the company was forced to pull the ads after Noth was accused of sexual assault.

Last year also saw Peleton report that its website traffic had dropped more than expected and that the retail showroom not doing as well as anticipated, leading the company to lower subscription growth and ad revenue expectations for fiscal 2022.