With Peloton’s redesign, customers can quickly assemble the bike by themselves without needing a Peloton crew. The redesign will also allow Peloton to ship its bikes through FedEx, further lowering the cost on the company’s part. McCarthy said that the redesign is a real thing’ and that the company has been working on it for quite some time. However, it isn’t known when the ‘do-it-yourself’ bike is coming to store shelves.
Currently, Peloton’s treadmills and bikes require white-glove delivery in separate pieces and a Peloton crew that will build the bikes and treadmills for customers. This service used to be free, but Peloton began charging an additional $250-$350 at the end of January 2022.
The company has suffered from an unexpected drop in sales in early May, which caused its shares to slump by 29% for the 3rd quarter of the fiscal year for 2022. The slowdown in demand and the massive drop in sales has hurt Peloton’s profits and revenue, causing them to consider “Do-It-Yourself” Peloton bikes and view Peloton workouts in third-party workout machines. Those are not the only measures Peloton is willing to take. To recover from the slump and decrease in sales, the company significantly increased the price of its Tread and Bike+ bikes while laying off approximately 800 people from its distribution and customer service departments.
