Peloton Shares Rally on Deal to Sell its Products in Amazon’s U.S. Stores
2022.08.24 16:41
Peloton (PTON) Shares Rally on Deal to Sell Its Products in Amazon’s US Stores
By Senad Karaahmetovic
Shares of Peloton (NASDAQ:PTON) are trading about 8% higher in premarket Wednesday after the company announced a partnership with Amazon (NASDAQ:AMZN) to sell its products in the United States.
Peloton is looking to broaden its customer base with CCO Kevin Cornils noting that the company will look to strike similar deals with other retailers. A deal with Amazon marks the first partnership the fitness company made as it looks to decrease dependence on its physical stores and website.
“Expanding our distribution channels through Amazon is a natural extension of our business and an organic way to increase access to our brand,” said Peloton Chief Commercial Officer, Kevin Cornils in a press release.
This way, Peloton is looking to capitalize on high interest for its products on Amazon with Cornils disclosing that there are around half a million searches on Amazon each month for Peloton’s products.
“We are thrilled to have Peloton products available for our customers in Amazon stores,” said Jim Adkins, Vice President of Recreational and Vocational categories at Amazon.
The Peloton Bike, which will be priced at $1,445, will now be available via in-home delivery with customers having the option of assembling the bike on their own or selecting an add-on expert assembly option.
