- Peloton is launching a connected strength product called the Peloton Guide to add to its lineup of in-house bike and treadmill machines.
- Beginning next year, Peloton will sell the Guide with its heart-rate armband as a bundle in the United States and Canada for $495.
- The news comes just days after Peloton lowered its revenue outlook for the fiscal year to $1 billion.
As Peloton grapples with finding new avenues of growth, the company announced Tuesday that it is adding a strength training product, known as the Peloton Guide, to its lineup of connected exercise equipment.
Beginning next year, Peloton will sell the Guide with its heart-rate armband as a bundle in the United States and Canada for $495. It will hit the market in the UK, Australia and Germany later in 2022.
The Guide consists of a camera that plugs into a TV screen and tracks users’ movements through machine learning technology. Members who pay an additional $12.99 per month can take live and on-demand classes that target different muscle groups through weightlifting, lunges and other strength-building exercises. The guide, who is also voice activated, will recommend classes based on the muscles a member has previously worked.
The Guide is a no-frills product compared to rivals like Lululemon-owned Mirror and Amazon-backed Tonal, which retail for $1,495 and $2,995, respectively. Tonal is a full-mounted device that includes magnetically powered weights for strength exercises. Earlier this month, Mirror said it was adding smart dumbbells and ankle weights that would attach to its machine.
Peloton’s equipment does not come with weights or other accessories. Users have to buy them separately. The company had said that it would upgrade to the guide over time, which could include adding other devices.
The announcement comes days after Peloton lowered its fiscal 2022 revenue forecast to $1 billion. CNBC also reported that Peloton has temporarily stopped hiring to cut costs as it sees a softening in demand for its bicycles and treadmills. Investors have been dumping the stock in recent days. Since Thursday’s news, Peloton shares have fallen by more than $10 billion in market value.
Chief Executive John Foley expressed optimism about the new products in Peloton’s pipeline, as well as other opportunities the company is pursuing in commercial, corporate and international markets. the peloton is Allegedly is working on a rowing machine that will connect to Hydro, a connected rowing machine that counts Lizzo and Justin Timberlake among its supporters.
According to Tom Cortis, Peloton’s Chief Product Officer, power classes are becoming increasingly popular among the company’s customer base. Within its app, Peloton already offers members a range of core exercises and weight training courses. Those customers pay $39 per month to access the content.
Without testing the guide, it’s hard to say how accurate the device will be at keeping track of a user’s movement and offering tips on technology. Machine learning technology could spell another headache for Peloton if it’s not an effective workout.
However, it could be a perfect option for someone looking for a connected fitness device at home without breaking the bank. Compared to Peloton’s Bike and Bike+, which sell for $1,895 and $2,495, respectively, the Guide will be the company’s least expensive product to hit the market. Its trade price is $2,495.
Peloton may be able to convince its existing, loyal customers to add Guide to their current at-home gym.
Shares of Peloton are down about 66% to date, with a market value close to $15.4 billion.