Peloton Interactive (PTON 4.75%) might be working up a sweat this morning, and not because of a workout on one of its connected fitness bikes. Instead, Amazon (AMZN -0.29%) just introduced the Prime Bike, its very first piece of connected fitness equipment, which will retail for less than $500.

Made in partnership with Echelon, a manufacturer of connected exercise gear, the officially titled Echelon Smart Connect Fitness Bikes EX-PRIME offers users a stationary bike to which you can connect your mobile device and tap into hundreds of Echelon's on-demand workout classes and programs.

Echelon Prime Bike

Image source: Echelon.

Ready to pull away from the pack

The Prime Bike was built at the request of Amazon and is exclusive to the retailer. It is similar in design to several other Echelon connected fitness bikes, but without some of the extras to keep the price low.

Echelon has a similarly designed bike at Walmart (WMT -0.80%), so it's not a completely new arrangement for the company. But because we're talking about Amazon, there is the fear it could undermine Peloton's push for its own lower-cost stationary bikes.

Peloton recently unveiled a revamped product lineup targeting its typical high-end customer and a new mid-tier level of connected fitness devices.

The Peloton Bike is priced at $2,150, while the new Bike+ goes for $2,500. Peloton also unveiled two levels of connected treadmills, the Tread and Tread+, that will retail for $2,500 and $4,300, respectively.

Nautilus, which has been trying to take the low end of the market for connected fitness products, could have more to lose by the introduction of the Prime Bike.

Echelon also makes connected rowing machines, something that has been on Peloton's radar, and a connected mirror, similar to what lululemon athletica recently purchased.