Peloton is revamping its workout app to offer users three different tiers, including a new free tier and a scaled-up tier that costs $24 per month. The company announced Tuesday that it is looking to rebrand as a fitness company for everyone, rather than being known as an in-home cycling company.
The first level is called Peloton App Free and offers over 50 classes in 12 fitness categories. The level contains a rotating set of recommended lessons that are constantly updated, but does not contain any live courses.
The middle tier, which is called Peloton App One, existed before the refresh and costs $12.99 per month. It includes unlimited access to thousands of classes in 9 of Peloton’s 16 modalities, including Strength, Meditation, Outdoor Walking, Yoga and more, as well as all classes in the free tier. App One members can take up to three equipment-based cardio classes per month (Cycling/Tread/Row). New on-demand and live classes will be offered to members, along with access to Peloton’s challenges, programs and collections.
The third tier, called Peloton App+, costs $24 a month and includes unlimited access to Peloton’s library, not including Lanebreak or Scenic classes. This tier includes all of App One’s offerings and unlocks access to thousands of equipment-based cardio classes for any indoor bike, treadmill, or rower. This level offers exclusive access to classes.
Peloton’s revamped app also includes a new “Gym” feature that allows users to take the app to the gym with them. The feature is available for all membership levels. The company notes that this launch is the first offering where training is written out, demonstrated in a supporting video, and designed to be done at the user’s own pace. Members get access to a range of routines on the floor where they can choose from different types of strength classes.
The revamped membership level and Gym feature is rolling out today in all five markets where Peloton is available, including the United States, Canada, United Kingdom, Germany, and Australia.
It’s worth noting that the new tiers aren’t a replacement for the standard $44 per month Peloton subscription required to run classes on the company’s home equipment.
“With this brand relaunch, we are reflecting the vibrancy and fullness of all that Peloton has to offer everyone,” Leslie Berland, Peloton’s Chief Marketing Officer, said in a statement. “We are shifting the perception from home to everywhere, from fitness enthusiasts to people at all levels, from exclusivity to inclusiveness among all current and future Peloton members. Our instructors and members live and breathe the real Peloton experience every day. We are excited to bring that energy and inspiration into the world.”
Peloton became popular during the pandemic when people were housebound and sought ways to train at home. When brick-and-mortar gyms reopened, demand for the company’s equipment plummeted. The company’s CEO, Barry McCarthy, who was brought in last year, told investors earlier this year that the company’s “road to the promised land” is its mobile app.
Today’s announcement indicates that Peloton wants to make itself less dependent on hardware sales. With this new offering, Peloton hopes to attract people who may not be able to afford the hardware equipment. It makes sense for the company to focus on services revenue, as Peloton made nearly $290 million in subscriptions last quarter and lost more than $17 million in hardware.