Peloton quietly drops unlimited free app membership because it failed to bring in paid subscribers

Peloton has removed its unlimited free membership tier on its fitness app due to low conversion rates. The free option, previously a key part of the company’s growth strategy, is no longer available for new users. Existing users who signed up for the unlimited free membership before its removal will still have access. New users now have to choose between two paid tiers and can opt for a seven-day free trial. Peloton underwent a rebrand last year, focusing on its app as a central component of its business. CEO Barry McCarthy had hoped that the free tier would attract users to upgrade to paid subscriptions, but this strategy did not yield the desired results. Despite the removal of the free tier, Peloton remains committed to its app strategy, acknowledging the need for improvements to enhance user engagement and conversion rates.