Sorry, folks. Maybe you thought you could save some money by buying a used Peloton bike from someone on NextDoor who just realized they don’t ride the bike often enough to justify its space in the living room. It’s a great way to save money, since brand new Peloton bikes retail for around $1,500. But Peloton has seen through that game and officially announced that it will start charging for its hardware going forward, even if it’s used equipment.
Peloton announced the fee in its fourth-quarter earnings report. In a decidedly capitalistic move, the company will charge a one-time activation fee of $95 USD/$125 CAD for used devices. Peloton says this is to “ensure that… new members receive the same high-quality onboarding experience” as all first-time customers. But the real reason is that 16% of subscription revenue comes from the used bike market, so it’s high time the company made some extra money from those users.
The fee applies to purchases of used Peloton Bikes and Bike+. The activation fee allows you to have a virtual custom fitting instead of the in-home fitting that comes with the first experience of purchase. It also allows access to the history of used hardware and an additional discount on accessories, replacement parts and shoes purchased for the bike. Peloton says it “views the secondary market as an important channel and will continue to enhance the member area.”
Experience.”
Used Peloton bikes can be had on Facebook Marketplace and trusted swap sites for as little as $500. That’s a significant savings over the bikes’ usual retail price. You’ll still have to pay the $45/month subscription fee to access the Bike and Bike+’s available library of digital workout content, plus the $95 activation fee. But all in all, that’s a lot less than I paid for my Peloton Bike+ when I bought it outright in 2021.
Peloton has had a turbulent journey so far, with layoffs earlier this year and the departure of longtime CEO Barry McCarthy from the company. companies. But this morning’s earnings report for investors was much more optimistic about business than predicted for the year. In fact, it will help put money in the pockets of all those people who thought they could save by buying used equipment. It also helps that Peloton is constantly updating its product to stay relevant to the home workout community.
The Peloton Bikes remain a premium product in the home fitness market, thanks in part to the selection of virtual classes with personable trainers and music you can easily add to a Spotify playlist. Apple, Samsung, and Google have tried to bring similar millennial-inspired workout vibes to their respective health and wellness suites, but none of them are Cody Rigsby. As long as Peloton can offer a touch of interoperability exclusivity, it can convince used buyers that it’s absolutely worth the activation fee.
