Peloton Shares Backpedal as Amazon Unveils ‘Prime Bike’ Rival

A new tech-enabled stationary workout bike from e-commerce giant  (AMZN) – Get Report is looking to nibble on Peloton’s  (PTON) – Get Report pedals. 

Peloton shares traded lower on Tuesday after rival exercise bike maker Echelon announced a deal with to produce and sell its own connected bike called Prime Bike – at a fraction of the cost of a Peloton.

Touted as Amazon’s first-ever connected fitness product, the Prime Bike will give customers access to hundreds of live and on-demand classes, Echelon said in a statement. It will retail for $499 vs. near-$4,000 for a Peloton.

Peloton has been on a tear over the past six months as fitness buffs have turned to the Internet-connected workout-at-home machines and the company’s online interactive fitness classes as the coronavirus pandemic has kept many gyms closed.

Now others like Amazon are looking to take a piece of Peloton’s pie. 

Peloton earlier this month launched more economical versions of its at-home gym equipment– Bike+ and the Tread – though even those retail for $2,495, still about five times the price of Amazon’s Prime Bike.

Source Article