Peloton Promotes New Equipment Amid Recall of Old Bikes

Core Insights - Peloton is facing a recall of certain Original Series Bike+ models due to reports of seat post breakage, affecting 833,000 bikes in the U.S. and 44,800 in Canada [2][3] - The recall is expected to cost the company approximately $16.5 million [4] Product Launch and Strategy - Peloton launched a new product lineup on October 1, which includes the Cross Training Series bike, treadmill, rowing machine, and an AI-assisted feature called Peloton IQ [5] - The new products are designed to help members achieve their wellness goals and include features like a swivel screen for easier exercise transitions and advanced computer vision for real-time suggestions [6] Market Response and Engagement - Since the launch of the new series, Peloton has observed a favorable shift towards premium products, particularly in treadmill and Plus line sales, attributed to excitement around advanced features [7] - Recent additions to Peloton's offerings include the Breathwrk app, micro-stores, a retail partnership with Johnson Fitness & Wellness, and a loyalty program called Club Peloton, which has engaged 500,000 members [8]