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Peloton to sell fitness equipment on Amazon in U.S.
STORY: Shares of Peloton Interactive rose nearly 20% Wednesday morning after the fitness equipment maker said it was partnering with Amazon.com and will sell its exercise bike and other accessories on the e-commerce giant’s U.S. website in a bid to prop up flagging sales. The partnership marks the latest move by Peloton to reposition itself as more people leave their homes and go back to working out at gyms.It’s also the company’s first time moving beyond its core direct-to-consumer model.Until now, Peloton’s new products and accessories were sold on its own website and in physical showrooms.In a statement, the company said deliveries of the Peloton Bike, priced at $1,445, will be available to most of the United States though Amazon, adding:”Expanding our distribution channels through Amazon is a natural extension of our business and an organic way to increase access to our brand.” Reuters reported in February that Peloton had drawn interest from potential buyers including Amazon, after an activist investor urged the company’s board to put it up for sale.Days after that report, Peloton replaced its CEO and cut about 2,800 jobs to win back investor confidence.Shares of Peloton are down more than 90% from its all-time high set in January of 2021.
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