From CNBC: 2024-08-22 11:24:15

Peloton will now charge new subscribers a $95 activation fee if they bought their hardware on the secondary market, reflecting an increase in new members purchasing used Bikes or Treads. During the fiscal fourth quarter, the company saw a 16% year-over-year growth in this segment, leading to increased revenue and gross profit.

Interim co-CEO Christopher Bruzzo mentioned that the activation fee will provide incremental revenue to support improving the fitness experience for members. While some subscribers view Peloton equipment as unused, attracting budget-conscious members from the secondary market can drive revenue growth without upfront costs in addition to the original sale revenue.

Startup Trade My Stuff estimates there are around a million unused Peloton Bikes worldwide, representing a potential source of new revenue for the company. With the new activation fee, each used piece of equipment sold could generate over $600 in revenue for Peloton, a win-win for both buyers and the company. Trade My Stuff offers significant discounts on used Peloton equipment compared to new.

The activation fee aims to provide new members with the same high-quality onboarding experience that Peloton is known for, offering virtual custom fittings and history summaries. Discounts on accessories like bike shoes and mats are also available for new members. The company remains committed to improving the new member experience and promoting various fitness modalities.



Read more at CNBC: Peloton to charge $95 activation fee for used bikes