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In 2020, Peloton was riding high, cashing in on the upper crust’s desire for socially distanced workouts and virtual community. But it didn’t take long before things, well, shifted gears as the company dealt with recalls, production pauses, an unfortunate celebrity partnership, and multiple rounds of layoffs. At one point late last year, a handful of execs were departing to sell rugs.
Now the company is going through a full rebrand, hoping to bounce back the way it did after its much-maligned 2019 holiday ad. This time, it wants to establish itself as an everyperson’s health company rather than a bike company for the wealthy and fit.
Some of the changes include:
- More free classes on its app;
- New tiered membership options, with prices ranging from $12.99 to $24 per month;
- A “Peloton Gym” feature that includes written and demoed workouts for users to complete at their own pace;
- And vivid new colors to replace the brand’s traditional red and black look.
“The real goal truly is just to bring more people into the ecosystem of Peloton however they want to come in, and then help them on their journey in how they want to consume our content over time, whether it’s through the free option, through the lower tier or through the higher tier or eventually buying or renting our hardware,” Peloton CFO Liz Coddington told CNBC.
The rebrand is being led by CMO Leslie Berland, who has been with the company since January, and is being overseen by CEO Barry McCarthy, who replaced Peloton founder John Foley last year.
Uphill climb: In its earnings call earlier this month, the company predicted its first-ever decline in subscribers in Q4, although subscriptions made up 60% of its revenue in Q3.