Last week’s Q1 2024 earnings call divulged that Peloton could expand their hardware device rental program – which currently only includes the Bike and Bike+ – to the Row. However, Peloton is unlikely to offer the Tread or Tread+ as a rental option due to the complexity of the installation & deliveries.
An analyst asked during the earnings call about fitness as a service (FaaS), which is how Peloton talks about their rental program. The question was posed:
“In terms of FaaS, has there anything you’ve learned so far on the subscription side that we might see you extend out subscription options into other connected fitness hardware products over time? I’m thinking around, elements of relaunching, Tread and trying to come back to market with that with maybe a new messaging.”
CEO Barry McCarthy responded:
“Let me jump in on FaaS and I’ll say a few words about app strategy and then ask Leslie to join. And I think it’s unlikely that we will extend FaaS at least to Treads and treadmills because that installation is more complex than Bike.
Is it possible that we might extend it to Row – possibly, but it’s still quite early in the life cycle of that product and I think we have more to learn before we would consider doing that. So I think that — and then lastly, I would say, we have our hands full with the growth opportunity that FaaS currently presents at 90 plus percent year-over-year and having just opened up Germany where it right out of the box, very small numbers, but right out of the box going really fast, much faster than we were forecasting. So there’s plenty for us to chew on FaaS with just the current business model, I think is the macro point. “
In other words, Peloton is not planning on including the Row as a rental option anytime soon since the product is still so new, only launching in the United States in September of 2022. However, McCarthy’s comments indicate they are open to it in the future.
The Tread and Tread+ are unlikely to be added at all because of their more complex delivery and installation process.
Peloton’s bike rental program first launched in 2022 and underwent a number of changes relatively quickly – first by expanding to additional states, then by expanding to the entire continental U.S. Earlier this year bike rentals became available in Canada, and later became available in Germany. McCarthy’s comments indicate the rental program in Germany has so far exceeded their initial expectations.
We will share updates on the potential addition of the Row to Peloton’s rental program as details emerge. For a general overview of Peloton’s most recent earnings call, check out our overview article.
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