Peloton Interactive (NASDAQ:PTON) shares are up 10% today after the company announced some new offerings and price changes. A new premium bike will be offered, as well as a lower-priced treadmill.
The company said it will be offering a new Peloton Bike+, costing $2,495. It will also lower the price of its current bike from $2,245 to $1,895. The company is also introducing a new treadmill called the Tread+ priced at $4,295. The cost of the original treadmill will drop significantly, to $2,495.
The new Bike+ incorporates recommendations from Peloton members, the company said, allowing users to complement cycling with other home workouts like strength, yoga, and meditation classes from Peloton. It includes a high-definition screen that rotates for easy viewing when members are off the bike. It also includes easy integration with Apple's Gymkit, and software that remembers members' goals and automatically scales resistance based on the instructor's guidance.
The additional offerings should help entice some consumers with discretionary funds to subscribe, seeking either a lower entry price or a more advanced equipment model. The company currently has 2.6 million members, and the new initiatives are meant "to grow our Peloton family even bigger," co-founder and CEO John Foley said in the announcement.
The company is attempting to expand its niche to include different ways to combine cardio and strength training, making for a more holistic workout. Peloton is also offering current cycling members in the U.S. a $700 credit to upgrade to the new unit.
CORRECTION: The original version of this report misstated the cost of Peloton's bike before the price reduction.