Peloton has made a deal with Amazon to sell its exercise bikes and other fitness products on the eCommerce giant’s platform as it tries to battle declining sales, according to multiple media reports Wednesday (Aug. 24).
The deal is the latest attempt by the troubled exercise equipment company to shore up sales as people begin going back to the gym after the pandemic. It represents the first time Peloton has teamed up with an outside retailer, thus far choosing to sell directly to the consumer via its website and brick-and-mortar stores.
Peloton Chief Commercial Officer Kevin Cornils told CNBC that Amazon was already seeing 500,000 a month for Peloton’s products, even though the company hadn’t sold its wares there until now.
“Post-COVID, the retail environment is continuing to evolve, and that’s something that we’re trying to understand better to make sure the Peloton of the future is calibrated appropriately for that,” he said. “We want to make it as easy as possible to get a Peloton.”
PYMNTS reported in February that Amazon was named as a potential buyer for Peloton back when the company was considering a sale.
At the time, Peloton had seen its value plummet from $50 billion in early 2021, driven by the pandemic and stay-at-home rules in 2020, to $8 billion.
The reports in February noted that Peloton linking with Amazon would also mean the sale of millions of users’ data leading to a possible shift in the health and wellness tech market. There are also several connections between Amazon and Peloton’s businesses, such as the fleet and logistics arm from Amazon which could help the fitness company with supply chain issues.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.