After a third round of layoffs, Peloton is now considering redesigning its bikes so users can assemble them independently. CEO Barry McCarthy is also considering a plan to allow subscribers to the Peloton app to view workouts on third-party fitness equipment. McCarthy told Bloomberg that Peloton has been working on redesigning the bike “for a while,” and on top of that, he said he hoped that Peloton’s long-awaited rower might be available this holiday season. Debut sometime. He also confirmed that the company isn’t giving up on Tread Plus entirely.
All with comments McCarthy made in May during the company’s third-quarter 2022 earnings. At the time, he floated the idea of potentially changing the hardware design so that in the future, Peloton devices could be designed to arrive in customers’ homes as one piece. Currently, Peloton’s treadmills and bikes are delivered in batches of white gloves and built for you by a staff member. The service used to be free, but Peloton started charging an additional $250 to $350 in late January.
The move is part of Peloton’s ongoing restructuring plan to reduce costs and improve cash flow for the company. On Friday, Peloton announced it would cut more than 500 jobs related to last-mile delivery and product distribution. The company also noted that it is raising the cost of Bike Plus and Tread while closing retail stores in 2023. Allowing customers to assemble their own equipment means the company can simply ship the equipment via FedEx — a move by rowing rival Hydrow’s recent launch of the slimmer, smaller Hydrow Wave rowing machine.