Peloton users are already frustrated with the new payment model

Peloton customers are already airing their frustrations over the new price model that has been introduced by CEO Barry McCarthy.

Last week, the fitness tech brand announced it was changing its subscription model, as McCarthy looks to reverse the company’s fortunes.

From 1 June, the cost of a Peloton membership will rise to $44 per month, up from $39 in the US and to $55 from $49 in Canada.

The rise in prices will enable the company to lower the prices of the bikes and treads which can cost upwards of $1000.

However, the hike in subscription fee has upset the brand’s current consumer base, with many posting their complaints in a customer Facebook group.

One user took aim at remarks McCarthy made back in February when he said the company “spent money on things that they shouldn’t have.”

Others expressed frustrations that Peloton members pay more for subscriptions while the company continues to pay instructors millions of dollars, some of whom reportedly make more than $500,000 a year.

Another customer was irritated at the company’s strategy, which they believe is aimed at reeling in new customers, saying that they owe more money on their bike than it’ll be worth now given the equipment price cuts.

There were a number of customers that leapt to the defence of the brand however, pointing to rising global inflation and the fact that even with the new prices, it is still cheaper than a gym membership.

Some customers also argued that people paying $1,000+ for a bike to begin with may not be too affected by a $5 monthly fee increase, the price equivalent to that of a cup of coffee.

Peloton has continued to struggle and activist Peloton investment group Blackwells Capital LLC, the same shareholder which called for the company to sack its co-founder John Foley, has claimed that new CEO Barry McCarthy has failed to make an impact.

Blackwells Capital believes that McCarthy has failed to reform the governance of the company nor justify its position as an independent company, according to a report by the Financial Times.

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