Peloton’s testing a leasing program for its Bike

Photo by Amelia Holowaty Krales / The Verge

Barry McCarthy hasn't been forthcoming about how he plans to get the company back on track. McCarthy dangled the idea of shaking up the subscription models of Peloton after quashing sale rumors a few weeks ago. The company will pilot a new model called One Peloton Club in a few states.

Customers will pay a one-time fee of $100 per month to cover the cost of classes and renting a bike, according to a Wall Street Journal report. If the customer cancels, the bike will be returned free of charge. For a limited time, the pilot will be available in Texas, Florida, Minnesota, and Denver. Customers will have to stop by a local showroom to sign up. You can see the addresses here. A one-time $250 delivery fee will be charged in certain markets.

Amelise Lane, a spokeswoman for Peloton, told The Verge in an e-mail that the company has created a limited pilot program in select U.S. markets to explore various pricing models and options for new members.

Users have had to pay a monthly subscription fee to use the bike. A monthly payment of $45 is what a customer would pay if they were to use financing. The monthly subscription adds up to $84 a month until the bike is paid off. It is possible to pay less each month to have the bike at home. The cheapest option was the digital-only subscription from Peloton. The rental doesn't pay off your bike, but you can purchase it with the price outlined in the club agreement.

This isn't the only move that Peloton makes to draw in new customers. For a limited time last week, the free at- home trial was extended from 30 to 100 days.

McCarthy is putting his stamp on things regardless of whether the new pricing strategy pays off. The reason McCarthy was brought on was because of his experience with subscriptions, according to the former CEO. At last month's Q2 earnings, it was clear that Peloton needs to shift from a hardware-first strategy to one that puts its content front and center. McCarthy spoke to the Financial Times.

That doesn't mean Peloton is abandoning hardware completely. The company is expected to launch a camera-based strength training system this year.