Amazon Pumps the Brakes on Echelon’s “Prime Bike”

When Tuesday’s announcement by Echelon Fitness that their $500 exercise bike, dubbed the ‘Prime Bike,’ would be an Amazon Prime customer exclusive, Peloton’s stock fell as much as 6.7%. Was the at-home fitness market perhaps too early to react? In a bit of a twist, Amazon quickly denied association with the bike, and ordered any inference of a collaboration with Echelon be retracted.

Daniel Litwin and Tyler Kern try to unravel the mystery over this week’s unusual happenings in this Business Casual segment. There certainly is a lot for Peloton to be concerned about if a $500 equivalent offering, backed by Amazon, hit the market against their $1,895 bike fitness option. Could this have been an over-ambitious strategy by Echelon to grab attention, or a crossing of wires between the two the companies?

KEY POINTS:

  • Echelon Fitness announced its EX-Prime Smart Connect Bike, “in collaboration with Amazon.”
  • Amazon denied any formal connection to Echelon’s so-called Prime Bike; was Echelon’s announcement misleading?
  • Why is Amazon distancing itself from this Prime-Exclusive fitness product as the at-home fitness market booms?

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