Peloton released a new Bluetooth heart rate monitor that's worn around the forearm and designed to be used with the company's suite of connected fitness equipment.

The arm band, which retails for $90, uses optical sensors to detect heart rate and features five LED lights to show heart rate zone, Bluetooth connectivity status and battery charge. 

The company also offers a chest-worn heart rate monitor that's currently selling for $34. 

WHY IT MATTERS

Wearables are a growing space within digital health, and other big tech players pair these tools with their own fitness offerings. 

In September, Amazon launched its new Halo View wearable alongside a membership service that includes workout classes and a meal-planning service. 

WHOOP, which announced its 4.0 wearable in the fall, includes its hardware for free with its subscription service that offers health insights and personalized coaching.

Apple meanwhile rolled out a slew of new programs for its Fitness+ platform designed to be used with its Watch, including Pilates, guided meditation and group workouts.

But at a TechCrunch Disrupt virtual keynote in September, Peloton Chief Content Officer Jennifer Cotter said Apple hadn't been successful in duplicating the company's "special sauce."

“[With Apple], there’s no kind of pull with the community to rally to take the classes, be part of it. So I would say that's a point of differentiation we're pretty proud of, and you can't just fake that. You can't just put a bunch of classes out there and motivate a bunch of people who are not working out currently to do it," Cotter said. 

THE LARGER TREND

The connected fitness company has been facing increased scrutiny over the past few weeks. At the end of January, CNBC reported Peloton was temporarily halting production of its bikes and treadmills as demand waned.

CEO John Foley denied the report, but said the company was "right-sizing" and "resetting our production levels for sustainable growth." The letter also noted Peloton may need to consider layoffs.

Days later, an activist investor argued the company should fire Foley and consider putting Peloton up for sale, noting its stock price had plummeted from its mid-pandemic high. 

And last week, BuzzFeed News reported some Peloton employees said the company owes them money. Two employees filed a class action lawsuit alleging Peloton didn't appropriately pay them for overtime, and another three spoke to BuzzFeed about other problems, like working through breaks, missing reimbursement for work expenses and not being paid out for vacation time after leaving the company.