Peloton Raises Prices, Launches AI Fitness Platform Globally

Peloton’s AI fitness platform and price hikes aim to boost revenue as company expands into commercial markets worldwide

Key Takeaways

• Price increases across equipment and subscriptions: Peloton raises Row pricing by $300 to $3,295, while all-access membership fees increase from $44 to $49.99 monthly in the US to drive revenue growth.
• AI-powered fitness technology launch: The company debuts Peloton IQ with computer vision and real-time coaching across revamped Bike+, Tread+, and Row+ models featuring enhanced processors and 360-degree swivel screens.
• Commercial market expansion strategy: Peloton integrates its 2021 Precor acquisition into a unified commercial business unit, targeting 100,000 facilities worldwide including hotels, gyms, and corporate clients.

Introduction

Peloton unveils its most comprehensive product overhaul since inception, combining significant price adjustments with AI-powered fitness technology and commercial market expansion. The fitness equipment maker announces price increases for hardware and subscriptions while launching Peloton IQ, an artificial intelligence system that provides real-time personal coaching through computer vision.

Under new CEO Peter Stern, the company debuts a commercial equipment line targeting high-use environments and integrates its Precor acquisition into a unified business unit. The strategic pivot addresses declining consumer revenue while positioning Peloton for growth in enterprise markets ahead of the holiday season.

Key Developments

Peloton implements immediate pricing changes across its product lineup, raising equipment costs by several hundred dollars in select markets. The Peloton Row sees a $300 increase to $3,295 in the US, while international markets face substantial increases for the Bike and Bike+ models.

The company introduces its Cross Training Series featuring 360-degree swivel screens and voice controls for seamless workout transitions. According to CNBC, all-access membership fees rise from $44 to $49.99 monthly, marking the first subscription price increase since 2018 in several markets.

Peloton IQ represents the company’s first major AI integration, offering personalized rep tracking and form feedback through enhanced cameras. The system connects with third-party wearables including Garmin Connect, expanding the platform’s data integration capabilities.

Market Impact

The pricing strategy creates mixed market dynamics, with equipment price increases offset by selective hardware reductions in core markets. The Bike drops from $1,745 to $1,445 in the US, while the Bike+ sees a $500 reduction to $1,995, lowering entry barriers for new customers.

International markets experience more significant price adjustments, with UK customers facing increases from £1,345 to £1,599 for the standard Bike. The commercial Pro Series commands premium pricing, with the Cross Training Bike+ reaching £2,299 in the UK market.

Revenue trends show contrasting performance across segments, with connected product revenue declining 6% year-over-year in Q4 FY2025, while paid connected fitness subscription revenues increased 4% for the full fiscal year. The commercial business demonstrates year-over-year growth despite overall revenue challenges.

Strategic Insights

The creation of a Unified Commercial Business Unit integrates Precor’s established presence across 80,000 facilities with Peloton’s digital ecosystem. This combination potentially reaches nearly 100,000 locations worldwide, significantly expanding the company’s commercial footprint beyond its current 20,000 facility presence.

Peloton’s four strategic pillars under CEO Peter Stern focus on improving member outcomes, meeting members everywhere, building lifetime customer relationships, and achieving business excellence. The commercial expansion addresses the “meet members everywhere” objective by placing equipment in hotels, gyms, and corporate environments.

Content partnerships expand beyond traditional fitness offerings, with collaborations including Halle Berry’s Respin Health for menopause support programs and partnerships with Hospital for Special Surgery for injury recovery content. These initiatives broaden Peloton’s addressable market beyond core fitness demographics.

Expert Opinions and Data

CEO Peter Stern explains the strategic vision, stating “The cross training series aims to help members integrate a mix of cardio, strength, yoga, and meditation into their fitness regimen.” Chief Product Officer Nick Caldwell emphasizes the enhanced user experience through seamless transitions between workout types.

Chief Commercial Officer Dion Camp Sanders views commercial installations as instrumental in generating consumer interest and sales, describing hospitality settings as growth drivers for both revenue and brand exposure. The strategy leverages customer interactions in commercial environments to drive home equipment purchases.

Commercial usage data reveals strong engagement, with over 7.5 million rides taken on Peloton Bikes in commercial settings globally over the past 12 months. Industry analysts view the commercial expansion as a logical evolution that could reduce revenue volatility and provide more stable income streams.

Conclusion

Peloton’s comprehensive strategy combines immediate revenue enhancement through pricing adjustments with long-term growth initiatives in commercial markets and AI-powered fitness technology. The integration of Precor creates a unified commercial platform serving enterprise clients while new AI capabilities differentiate consumer offerings.

The pricing strategy balances revenue optimization with market accessibility, raising subscription and premium equipment costs while reducing entry-level hardware prices. Commercial market expansion addresses declining consumer revenue trends and positions Peloton for diversified income streams across hospitality, corporate, and residential fitness segments.