Peloton is adding a $95 activation fee for secondhand machines

Thinking of buying a secondhand Peloton machine? Well, US and Canadian customers who bash volition present person to wage a one-time $95 (or $125 CAD) “used instrumentality activation fee.”

Peloton made the announcement successful its Q4 2024 shareholder letter. The interest doesn’t use to refurbished models you bargain straight from Peloton oregon its third-party organisation partners. The institution clarified successful an net telephone this interest volition beryllium applied to folks who bargain a Peloton instrumentality straight from a erstwhile owner.

The authoritative crushed wherefore is truthful that caller members “receive the aforesaid high-quality onboarding acquisition Peloton is known for.” That whitethorn beryllium true, but the interest is besides a mode for Peloton to get a chopped of secondary hardware sales. In today’s net call, the institution itself said that the interest volition besides beryllium a “source of incremental gross and gross profit.” For users, the interest volition see a virtual customized fitting for Bike and Bike Plus customers, arsenic good arsenic a past summary of the pre-owned hardware. Peloton says it’ll besides widen discounts connected motorcycle shoes, mats, and spare parts.

The evident entreaty of buying a Peloton from a secondhand is the savings. On Facebook Marketplace, you tin easy find utilized Peloton Bikes successful the $300-$500 range. (The regular Bike retails for $1,445.) There are besides backstage Facebook Groups similar Peloton Buy Sell Trade that are fashionable wrong the community. Secondhand buyers inactive person to wage a $44 monthly rank interest to entree Peloton’s content, but the archetypal savings are important fixed that Peloton hardware is costly for the category.

Otherwise, Peloton’s net telephone was much hopeful than its last, which saw CEO Barry McCarthy measurement down amid different circular of layoffs. Peloton shares rose much than 15 percent arsenic the institution showed signs that efforts to reverse its mediocre fortunes were taking hold, signaling humble income maturation and narrowing its losses to $30 million, down from $241 cardinal year-over-year.