Update: Amazon has clarified that it has nothing to do with the Prime Bike from Echelon. The bike has been pulled from Amazon’s website. Also, AMZN says it’s working with Echelon to change the product’s branding.
Peloton (NASDAQ:PTON) is seeing PTON stock dip lower on Tuesday following the reveal of a new exercise bike from Amazon (NASDAQ:AMZN) and Echelon Fitness.
The new bike from Echelon Fitness is called the EX-Prime Smart Connect Bike, or simply the Prime Bike. The company notes that this is the first time that an Amazon-connected fitness device has been released.
The Prime Bike is clearly a rival to Peloton’s own fitness offerings. It features live and on-demand fitness classes that owners can make use of for their workouts. PTON offers its own similar services to customers of its workout bikes.
Unfortunately for PTON stock, the two exercise bikes are nowhere close in price. Peloton’s fitness bikes typically start at $2,245. That’s more than four times the $499 price tag that the Prime Bike is sporting.
Lou Lentine, president and CEO of Echelon Fitness, said the following about the Prime Bike.
“We were built on the idea of attainable fitness for everyone. The Prime Bike was developed in collaboration with Amazon, aiming to create an amazing, connected bike for less than $500 and it’s proven to be a phenomenal match. Amazon looking to us to partner on their first-ever connected fitness product is recognition of our commitment to deliver quality at a reasonable price-point as reflected in our explosive growth over the last year.”
PTON stock was down 1.2% while AMZN stock was up 5.5% as of Tuesday afternoon.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.
