Peloton Embraces Rental Model After Founders Exit

Less than 24 hours after the announcement that two co-founders had left the company, connected-fitness pioneer Peloton unveiled a new nationwide rental program Tuesday (Sept. 13) to substantially reduce the cost to new users.

The company stated in the announcement that it had tested the rental program in several states and the results were promising.

The rental program “allows consumers who have been interested but have yet to purchase, the opportunity to rent the Bike/Bike+ for a low monthly fee that includes the cost of an All Access Membership,” the announcement stated.

“As the global leader in the connected fitness space, we are committed to delivering convenient, engaging and motivating workout experiences to a broad array of consumers who want to be the best version of themselves anytime, anywhere,” Dara Treseder, Peloton senior vice president and global head of marketing, communications and membership said in a prepared statement. “Our expanded national rental program allows even the most value-conscious customers to fully immerse in the Peloton experience.”

For the original Peloton Bike, customers will pay a $150 one-time setup fee and then $89 month with the ability to buy the bike for $895 after 12 months.

For the Peloton Bike+, the monthly charge will be $119 and the price after 12 months will be $1,595.

On Monday (Sept. 12), Peloton announced that Co-founder and Executive Chair John Foley and co-founder and Chief Legal Officer Hisao Kushi had resigned from their positions.

The announcement did not give reasons for either departure and included the customary expressions of appreciation by remaining executives.

Peloton’s new board chair is Karen Boone, who joined the board in 2019 as chair of its Audit Committee.

Peloton’s new chief legal officer is set to be Tammy Albarrán, effective October 3.

Read more: Peloton Operations, Supply Chain Execs Exit

PYMNTS reported in February that other Peloton executives had left the company.