Peloton (NASDAQ:PTON) launched a partnership with TikTok on Thursday as part of its strategy to change its public perception and attract a broader array of customers as sales and profits fall.
The partnership will create a new fitness hub on the social media platform dubbed ”#TikTokFitness Powered by Peloton.” It will feature short-form fitness videos, longer live classes, content from Peloton’s instructors and collaborations with TikTok creators.
Shares of Peloton rose about 10% in pre-market trading after the news was announced. They began Thursday’s session up 48 cents, or 8.9%, to $5.86.
It comes about six months after Peloton rebranded itself as a fitness company “for all” and launched a tiered pricing strategy for its app. The changes were designed to position Peloton as more than just a bike company and bring in new customers who may not have been able to afford its pricey connected fitness equipment but could be interested in a monthly subscription for its content.
During the COVID-19 pandemic, Peloton became a Wall Street darling after gyms shuttered and consumers flocked to buy its stationary bikes and at-home treadmills. But demand plummeted when the virus receded and consumers returned to normalcy.
In the three months that ended Sept. 30, Peloton lost 30,000 members and revenue fell to $595.5 million, down from $757.9 million three years earlier at the height of the pandemic.
