Peloton is giving free bikes to disappointed Flywheel customers

Flywheel said Wednesday it's shutting down the classes beamed to its bikes in March. Peloton will let Flywheel customers trade in the $1,500 bikes for a used Peloton bike for free. The decision for Flywheel to end the classes follows a settlement over patent infringement.

"We look forward to welcoming these new members into the Peloton family," the newly publicly traded company said in a statement. Flywheel customers will have to fill out a form to receive the bikes.

Flywheel's cessation of its virtual classes follows a two-year legal battle between the two fitness companies.

Peloton sued Flywheel in September 2018 claiming the former copied the technology to create its in-home bikes and the leaderboard that lets customers race against each other. Flywheel settled earlier this month, admitting that it copied the technology and agreed to "stop infringing Peloton's patented technology." That resulted in Flywheel having to shut down the in-home bikes.

Flywheel's studio operations aren't affected by the changes. It has about 30 studios in the US after closing roughly a dozen in 2019.

Peloton sells $2,245 indoor bikes and a $4,295 treadmill with an HD touchscreen to watch classes. Customers pay subscription fees of $39 per month associated with its bike and treadmill to participate in classes. The company, which went public last year, has seen its shares fall 4% for the year.

Flywheel didn't immediately return CNN Business' request for comment.