Persistent inflation and snarled supply chains are some of the reasons why Peloton Interactive, Inc. is about to tack on a $250 delivery service for its Bikes and an additional $350 for its Tread, according to the company's website.
In the fine print, a delivery and setup fee will be applied to every Bike and Bike+ after Jan. 31. Here's what the fine print says on the website, right before checking out:
All-Access Membership separate. Delivery and setup included with Peloton Bike purchase through 1/30/2022 ($250 Value). No cash value. Not valid outside the United States. Delivery and setup included with purchase only available in continental US. From 1/31/2022 7:00AM EST a delivery and setup fee of $250 applies to the Peloton Bike.
A $350 charge will be added after Jan. 31 for the delivery and setup fee for the Tread. Factoring retail price plus shipping and delivery, the Bike will now cost $1,745 and the Bike+ $2,745. As for the Tread, the total cost with shipping and setup will be $2,845.
Peloton has been selling bikes since 2014. This is the first time the company has charged delivery and setup fees. Peloton's chief marketing and communications officer, Dara Treseder, told CNBC the added costs were due to "growing inflation and higher supply chain expenses."
A spokeswoman for the company said, "like many other businesses, Peloton is being impacted by global economic and supply chain challenges that are affecting the majority, if not all, businesses worldwide."
"Even with these increases, we believe we still offer the best value in connected fitness, and offer consumers various financing options that make Peloton accessible to a wide audience," the spokeswoman said.
The prices hikes come as the company recently warned about continuing supply chain pressure and demand outlook. Shares of Peloton have plunged more than 80% since hitting a high of $167 in January 2021.
Peloton's momentum has stalled in the last few months as people are starting to realize its products are overpriced. Anyone can take a bike and slap on an iPad or computer monitor on it for much cheaper.
It's that easy. Why overpay?