FAST FIVE: Peloton Shares Slide As Amazon Announces "Prime Bike"
Peloton Shares Slide As Amazon Announces “Prime Bike” Tyler Durden Tue, 09/22/2020 – 08:11 Peloton shares slid 2% premarket Tuesday after NBC News reported that Peloton competitor Echelon has teamed up with Amazon to launch an affordable smart bike, called Echelon Smart Connect Fitness Bikes EX-PRIME, or simply the Prime Bike. “The Prime Bike was developed in collaboration with Amazon, who wanted to create their first-ever connected fitness product, that retailed for less than $500,” an Echelon spokesperson told NBC News Shopping.
The spokesperson said Prime Bike is designed to meet “the perfect balance” between aesthetics, technology capabilities, and “reasonable pricing” and is “the only connected fitness product designed exclusively for Amazon.” However, unlike Peloton, Prime Bike doesn't come with a screen to view live classes; rather, the user must use an iPad or other smart devices. Amazon is entering the home fitness equipment market as hundreds of thousands of Americans have canceled their gym memberships, forcing many gym operators to declare bankruptcy (see: here & here). Prime Bike is one of the cheapest alternatives to the Peloton bike that retails for more than $2,000. .