Peloton is in something of a financial rut lately, and we all know what companies do when that happens. They take it out on consumers. To that end, the exercise machine maker just announced it will be charging a $95 “used equipment activation fee” to anyone who buys one of its machines on the secondhand market, according to a report by CNBC.
The company made this announcement in its Q4 2024 shareholder letter. The fairly exorbitant fee will apply to any machine bought directly from a previous owner, meaning anything purchased via Craigslist, Facebook Marketplace or, heck, even a neighbor down the street. Without tithing $95 to the church of Peloton, the machine won’t have access to any of the classes or features the company has become known for.
The company says this activation fee is just to ensure that new members “receive the same high-quality onboarding experience Peloton is known for.” In a recent earnings call, however, a company representative was more transparent, calling the fee a “source of incremental revenue and gross profit,” according to The Verge.
The standard Bike, for instance, sells new for nearly $1,500, but you can pick up a used one online for $300 to $500. Now, that price goes up to $400 to $600. Peloton also requires a monthly membership fee to access content, which is around $44.
This one is not really filling up my outrage meter. Amortize it over the first year before you finally admit you don’t want to pay a monthly fee to subscribe to your ad-hoc coatrack, and it’s 8 bucks a month, and you’re already paying $45 or whatever for the whole shebang, including what have to be some pretty expensive live classes from Instructor/Influencers who have a certain amount of leverage. At least there’s a real service involved, and likely the new bikes subsidize some of it. They should admit that’s what it is, but… meh.
They’re already charging you for the real service involved.