Peloton Interactive (NASDAQ: PTON) might be working up a sweat this morning, and not because of a workout on one of its connected fitness bikes. Instead, Amazon (NASDAQ: AMZN) just introduced the Prime Bike, its very first piece of connected fitness equipment, which will retail for less than $500.
Made in partnership with Echelon, a manufacturer of connected exercise gear, the officially titled Echelon Smart Connect Fitness Bikes EX-PRIME offers users a stationary bike to which you can connect your mobile device and tap into hundreds of Echelon's on-demand workout classes and programs.
Ready to pull away from the pack
The Prime Bike was built at the request of Amazon and is exclusive to the retailer. It is similar in design to several other Echelon connected fitness bikes, but without some of the extras to keep the price low.
Echelon has a similarly designed bike at Walmart (NYSE: WMT), so it's not a completely new arrangement for the company. But because we're talking about Amazon, there is the fear it could undermine Peloton's push for its own lower-cost stationary bikes.
Peloton recently unveiled a revamped product lineup targeting its typical high-end customer and a new mid-tier level of connected fitness devices.
The Peloton Bike is priced at $2,150, while the new Bike+ goes for $2,500. Peloton also unveiled two levels of connected treadmills, the Tread and Tread+, that will retail for $2,500 and $4,300, respectively.
Nautilus, which has been trying to take the low end of the market for connected fitness products, could have more to lose by the introduction of the Prime Bike.
Echelon also makes connected rowing machines, something that has been on Peloton's radar, and a connected mirror, similar to what lululemon athletica recently purchased.
10 stocks we like better than Amazon
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 Amazon wasn't one of them! That's right -- they think these 10 stocks are even better buys.
*Stock Advisor returns as of August 1, 2020
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Rich Duprey has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon and Peloton Interactive and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. 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.