Peloton, maker of connected fitness equipment, may be looking into the wearable space next. According to a Bloomberg report, the publicly traded company is working on a heart-rate-monitoring armband.

The tool is expected to connect with the company's smart bikes and treadmills, as well as the company's fitness app, according to the report.

It's no secret that the fitness company has been interested in the wearable space for some time. In fact, Peloton does have a basic heart rate monitor that straps to a user's chest that is listed on its website for $49.

Additionally, in March reports surfaced that the company acquired Atlas Wearables, which makes a fitness smartwatch.

WHY IT MATTERS

The wearable space is hot right now. Three out of the five FAANG companies are now touting wearables, with Facebook reportedly working on one as well. Apple took the wearable space by storm in 2018 when it announced a de novo clearance for an atrial fibrillation-detecting algorithm and an ECG on its Apple Watch Series 4.

Google is also joining the space after acquiring Fitbit for roughly $2.1 billion. Last summer, Amazon released its Amazon Halo, a wrist-worn activity tracker and accompanying app. Other competitors in the wearable space include Samsung, Withings and Garmin.

THE LARGER TREND

Earlier this week Peloton announced that it is launching a new corporate wellness program for businesses in the U.S., U.K., Canada, Germany and eventually Australia.

Peloton hit a rough patch earlier this year, recalling its connected treadmills after reports of 70 injuries and one child death related to the device. This came after increasing pressure from the U.S. Consumer Product Safety Commission to take the products off the market. Originally Peloton fought back at the CPSC's initial warnings.

The company has since rolled out a new safety feature on its Tread+ that locks the treadmill after 45 seconds of inactivity.

In May, during the company's third-quarter earnings call the company announced that it beat its revenue expectations by $140 million, however, the company said that the treadmill recalls cost the company around $165 million.