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Peloton announces $95 “used equipment activation fee” (arstechnica.com)

submitted 3 months ago by AnActOfCreation@programming.dev to c/technology@lemmy.world

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Peloton is introducing a $95 "used equipment activation fee" for bikes purchased from outside its official channels in the US and Canada, aiming to boost revenue and maintain onboarding quality for new subscribers.
The fee has sparked criticism as it reduces the cost savings typically associated with buying secondhand equipment and diverges from practices in other industries, potentially discouraging used market purchases.
Peloton's hardware sales continue to decline, but subscription revenue has seen slight growth; the company still faces financial struggles despite cost-cutting measures and layoffs.

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[-] JohnDClay@sh.itjust.works 5 points 3 months ago

But this fee wasn't there when people originally purchased this was it? If so, they will now have a less valuable product since they won't be able to sell it as easily. Or are they only doing it for new units?

[-] UpperBroccoli 1 points 3 months ago

To my understanding, it has always only been usable with a subscription, so...

this post was submitted on 23 Aug 2024

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