Update: Since the time of publication, Amazon has said it has no formal relationship with Echelon and the bike isn't an Amazon product or related to Amazon Prime. We are working with Echelon to clarify this in its communications, stop the sale of the product, and change the product branding,” an Amazon spokesperson told TheStreet. Read the full story here.
Peloton shares traded lower on Tuesday after rival exercise bike maker Echelon announced a deal with Amazon.com to produce and sell its own connected bike called Prime Bike - at a fraction of the cost of a Peloton.
Touted as Amazon’s first-ever connected fitness product, the Prime Bike will give customers access to hundreds of live and on-demand classes, Echelon said in a statement. It will retail for $499 vs. near-$4,000 for a Peloton.
Peloton has been on a tear over the past six months as fitness buffs have turned to the Internet-connected workout-at-home machines and the company’s online interactive fitness classes as the coronavirus pandemic has kept many gyms closed.
Now others like Amazon are looking to take a piece of Peloton's pie.
Peloton earlier this month launched more economical versions of its at-home gym equipment– Bike+ and the Tread – though even those retail for $2,495, still about five times the price of Amazon’s Prime Bike.
Indeed, Peloton may be facing an uphill ride in terms of competition. Apple (AAPL) - Get Report too is getting into the home-fitness business with its new Apple Watch 6 and a subscription service that will get people working out at home, albeit without a stationary bike.
Latest Videos From TheStreet and Jim Cramer:
- What to Expect from Tesla's Battery Day
- Market Update: Stocks Rise on Tuesday, Sept. 22
- Microsoft's Biggest Acquisitions
- Why Jim Cramer Says Tesla's Battery Day Is 'Very Bullish'
- Jim Cramer Manages Tech Stocks in His Portfolio
- Jim Cramer Adds Nike to His Action Alerts PLUS Portfolio
- Walmart Targets Zero Carbon Emissions by 2040