they burst onto the Australian market under a questionable cloud, now and because of slowing demand for their overpriced Peloton Interactive home fitness gear the US Company is jacking up rises.
The Wall Street Journal reported that Peloton who have been hurt by slowing demand, is set to start charging customers hundreds of dollars in delivery and setup fees for its basic stationary bike and treadmill products, according to a banner notice on its website.
Starting Jan. 31, customers will pay A$360 for the delivery and setup of some of its bikes.
The company will also tack on a A$484 delivery and setup fee for some of its treadmills, according to its website.
Those fees are currently included in the price of those products.
With the added fees, prices for Peloton’s basic bike will increase significantly claim observers.
Currently being sold via a David Jones Peloton store within a store.
Recently their signature exercise bike was blamed for the death of a key character in HBO’s new Sex in the City spinoff.
Peloton stock fell about 11% after the show was initially streamed.
Immediately there was speculation that Peloton had been duped or could take legal action against HBO Max for showing its stationary bike in an unflattering light. And the company even released a bizarre statement speculating that the fictional character had not been in good shape.
“Riding his Peloton bike may have even helped delay his cardiac event,” the company reasoned.
They then released a viral YouTube commercial that featured actor Chris Noth, making light of the situation.
But then the buzz surrounding Peloton and the show was eclipsed by reports of multiple women accusing Noth of abuse. The show distanced itself from Noth, and Peloton was forced to take the commercial down.
Now the company’s stationary bikes are quickly falling out of favour with consumers.
Peloton was going strong in 2020 during the early months of the Covid-19 pandemic. But now gyms are open again, and people don’t feel trapped at home. The change hurt PTON stock claim analysts.
The company’s most recent earnings report was horrific, sending the shares down 30%, as the company reported a larger-than-expected loss for its fiscal first quarter.
Now they have lowered its outlook for the full year with no mention how their recently launched Australian operation is performing.
The company’s revenue from fitness products fell 17% versus the same period a year earlier to $501 million.
Peloton also copped a downgrade from JMP Securities, which cut PTON stock from “market outperform” to “market perform.”
All in all, Peloton’s shares fell by 76% in 2021.
