#New Amazon-sponsored stationary bike sends Peloton shares down

Shares of the fitness company tumbled by nearly 4 percent on Tuesday after its rival Echelon announced that it had teamed up with Amazon to sell a new stationary bike, called Prime Bike.

The $499 bike represents Amazon’s first foray into a connected fitness product with a price tag that’s about a quarter the cost of a Peloton bike.

The Prime Bike is being dubbed as a Peloton knockoff because it includes many of the same features as the luxury bike without the built-in screen. Instead, Echelon customers use their own tablets to follow along with virtual spinning classes.

“The Prime Bike was developed in collaboration with Amazon, aiming to create an amazing, connected bike for less than $500 and it’s proven to be a phenomenal match,” said Echelon chief executive, Lou Lentine in a statement. “Amazon looking to us to partner on their first-ever connected fitness product is recognition of our commitment to deliver quality at a reasonable price-point as reflected in our explosive growth over the last year.”

Shares of Pelaton are still up more than 200 percent this year on growing demand for its indoor exercise equipment due to the coronavirus. The stock recently traded down 1.5 percent to $93.31.

According to TechCrunch, the Prime Bike isn’t exclusive to Amazon. Walmart is selling a version of the same bike under the name Connect Sport Bike, also for $500, TechCrunch said.