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, the company said in a news release 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.
“Expanding our distribution channels through Amazon is a natural extension of our business and an organic way to increase access to our brand,” Peloton Chief Commercial Officer Kevin Cornils said in the news release.
“We want to meet consumers where they are, and they are shopping on Amazon. Providing additional opportunities to expose people to Peloton is a clear next step, as we continue to generate excitement for our unparalleled connected fitness experience.”
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.
Earlier this month, Peloton announced it was cutting 800 jobs and lowering prices while also ordering employees to return to working in company offices three days a week.
The moves are meant “to make Peloton more efficient, cost-effective, innovative, and to best position ourselves for the future,” CEO Barry McCarthy said in a memo to employees.
McCarthy added that Peloton would shift at least some delivery operations to third-party companies, shutter U.S. warehouses and outsource large portions of its customer-support operations.