SoulCycle is ready to introduce its own high-end connected stationary bicycle for home fitness enthusiasts, an obvious direct attack on rival Peloton Interactive (NASDAQ: PTON). However, SoulCycle's bike will cost more, and the package of benefits it offers will be fewer, suggesting it might not be an easy sell when there are already questions about how broad the market is.

Going nowhere fast

SoulCycle, which currently offers studio-based cycling workout classes, revealed the details of its first stationary bike for the home, which is slightly bigger, a little heavier, and able to carry more weight than the Peloton model. 

SoulCycle studio bicycles

Image source: SoulCycle.

The bike, which will costs $2,500, also features a 21.5-inch HD monitor to tap into on-demand cycling classes available via a monthly subscription through the Variis online platform. The subscription is $40 per month after a mandatory one-year trial period.

That's actually more expensive than Peloton's package, which costs $2,245 for the bicycle with the connected classes running $39 per month. Yet, where Peloton also includes cycling shoes, a floor mat, a heart rate monitor, and headphones, SoulCycle does not provide any similar extras.

Peloton also offers a subscription-only option, recently lowering the cost to $12.99 a month. While that annoyed subscribers paying the higher rate, since they also had to purchase the pricey stationary bike too, Soulcycle's owner Equinox Group did not say whether they planned to make a similar option available.

Analysts are concerned, however, that Peloton's growth rate is slowing, as it added fewer subscribers in the fiscal first quarter than it did in the fourth. Peloton's stock is down 36% from its post-IPO high.

10 stocks we like better than Peloton Interactive
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Peloton Interactive wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

 

*Stock Advisor returns as of December 1, 2019

 

Rich Duprey has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Peloton Interactive. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



Source link