House of Representatives to give staff free Peloton memberships, costing taxpayers

Peloton needs find more products to sell to their subscribers: Citron Research founder

Citron Research founder Andrew Left discusses why he believes Peloton should invest in Blue Apron.

The House of Representatives is planning to announce they will give staffers in Washington, D.C., and in district offices, free Peloton memberships using taxpayer dollars each month amid skyrocketing inflation.

According to a draft email obtained by FOX Business from the office of the Chief Administrative Officer (CAO), the "premier employee benefit," which will also be made available to all Capitol Police, will provide staffers with both Peloton All-Access and a Peloton App membership at no monthly cost.

The U.S. Capitol in Washington, D.C., U.S., on Sunday, Oct. 3, 2021. (Samuel Corum/Bloomberg via Getty Images / Getty Images)

PELOTON SALES PLUMMET, SHARES SKID

Beginning May 18, the government contract with fitness giant Peloton, under efforts from the House Center for Well-Being, will be offered to the estimated 10,000 people on staff working for the House of Representatives and about 2,300 Capitol Police officers.

A source familiar with the matter told FOX Business that the contract cost is a $10,000 upfront payment to Peloton, plus an extra $10 per month charge for each staffer or officer that utilizes the benefit. If 12,000 staffers took advantage of the benefit, it would cost taxpayers $120,000 a month.

For other Americans, a Peloton All-Access Membership costs $39 per month and a Peloton App Membership costs $12.99 per month.

A detail shot shows the running deck of a Peloton Tread treadmill during CES 2018 at the Las Vegas Convention Center on January 11, 2018 in Las Vegas, Nevada. (Ethan Miller/Getty Images)

The email sent from the office of the CAO told the staffers and officers they would "have access to thousands of live and on-demand classes, across multiple disciplines, that are available for streaming across multiple devices and require no purchase of Peloton equipment."

In a statement to FOX Business, Peloton said it "can confirm that the US House of Representatives is extending Peloton Corporate Wellness to all House staff and Capitol police."

GET FOX BUSINESS ON THE GO BY CLICKING HERE

With a total of 7 million members, Peloton has made a name for itself in the fitness tech space with its stationary exercise bikes, treadmill and online fitness class. (REUTERS/Shannon Stapleton / Reuters Photos)

With a total of 7 million members, Peloton has made a name for itself in the fitness tech space with its stationary exercise bikes, treadmill and online fitness class subscriptions. The company notably lowered its equipment prices in 2021. However, Peloton announced in January that it’s now charging $250 and $350 for the setup and delivery of its original bike and treadmill, respectively.

FOX Business did not receive an immediate response from the office of the CAO.

FOX Business' Cortney Moore contributed to this report.

Source: Read Full Article