Peloton has ended new signups for their free app tier. Moving forward, customers will only be able to choose between App One and App Plus. Note that this decision does not affect current free membership users; Peloton is simply preventing future sign-ups from this point forward.
This news was first reported by CNBC. Peloton reportedly made this decision because the free app tier was not as successful as they’d hoped in converting free users to paid customers. According to the article:
Peloton has quietly removed its unlimited free-membership tier on its fitness app less than a year after it debuted because the initiative was failing to convert users into paid subscribers, the company said.
Peloton first announced their new App tiers almost a year ago in May of 2023. The app tiers announced at the time were: Peloton App Free, Peloton App One, and Peloton App+. Peloton App One costs $12.99 per month and Peloton App+ costs $24 per month. App One users receive access to the majority of Peloton classes, but for modalities that do not require a hardware device such as a Bike, Tread, or Row. App One users are limited to three hardware-base classes per month.
Though the free version of the app will continue to exist for those who have already signed up, it will not be an option for new users moving forward.
At the Morgan Stanley Technology, Media & Telecom Conference in March, Chief Financial Officer Liz Coddington provided additional context about the decision. According to CNBC:
Liz Coddington said the company “quickly” learned that the free tier was “cannibalizing” efforts to convert free-trial members to paid subscribers, which led the company to shift to a free-trial model.
“It’s important to know that our app is still a work in progress. We still have a lot of opportunities to improve it,” said Coddington. “What we found is that we need to figure out ways to better engage them during the trial period, that they convert to paid and then also keep them engaged over time, so that they will retain at a higher rate. … When we do that, we believe that our marketing efficiency will improve, both because we’ll have better retention and better conversion rates.”
Peloton also recently changed the length of the free app trial. It has typically run for a period of 30 days, with occasional promotions for as long as 60 and 90 days. However, Peloton has quietly set the default free trial option to only seven days.
There will likely continue to be extended free trial promotions throughout the year; however, the standard free app trial moving forward will be limited to one week. Note that this does not affect the Peloton Guest Pass, which allows existing members to secure a 60 day free trial for friends and family.
You can read the complete article via the CNBC website.
What do you think about Peloton’s decision to discontinue new signups for the free app tier and permanently change the length of the standard free app trial?
Support the site! Enjoy the news & guides we provide? Help us keep bringing you the news. Pelo Buddy is completely free, but you can help support the site with a one-time or monthly donation that will go to our writers, editors, and more. Find out more details here.
Get Our Newsletter Want to be sure to never miss any Peloton news? Sign up for our newsletter and get all the latest Peloton updates & Peloton rumors sent directly to your inbox.
Leave a Reply