On Wednesday morning, it was announced that peloton interactive, a fitness equipment and subscription company, would sell bicycles and equipment outside its own stores for the first time through an exclusive deal with Amazon.
It is worth noting that Amazon is one of the companies reported to be interested in acquiring peloton earlier this year. The company often participates in strategic negotiations, which may lead to various results from cooperation to purchase. The details of the recent Amazon one medical negotiation prove this.
Peloton’s integration with Amazon shows serious thinking and planning, including Amazon’s delivery in three hour increments and the option of free assembly. It is reported that peloton is fully transferring delivery and assembly to third-party services, a role previously undertaken by the internal team of peloton trucks.
This is part of a larger effort to revive peloton’s post pandemic business under the leadership of CEO Barry McCarthy, who took office in February this year. The New York City based company is laying off hundreds of employees and closing some retail stores.
For Amazon, this is a significant victory for the Seattle based company in its continuous efforts to persuade well-known brands to open stores on its e-commerce portal.
Doing so may require weighing major brands, giving Amazon the opportunity to understand its business, while directly competing with legitimate third-party sellers and problematic counterfeits. After two years of trial, Nike decided to withdraw its products from Amazon in 2019, which is a symbol of challenge.
Peloton’s New Amazon store offers products including original peloton bicycles, peloton guide fitness cameras, and selected accessories and clothing. Our preliminary comparison this morning shows that the prices of each product in Amazon and peloton online stores are the same.