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.
Only corporations can own things. The individual can only rent property, never own it.
I’ll push back on that a little. Peloton has, from the beginning, been a very closed ecosystem.
Contrast this to the smart trainer I have which is marketed to cyclists (a Wahoo KICKR). It uses standard protocols to talk, and while they have some software available, it works independent of their ecosystem on standards compliant equipment (ANT+ and BLE). You can even talk to it using the open source GoldenCheetah software.
I would say I own this device. Sure I can’t necessarily hack the firmware easily, but I can’t hack the firmware on my microwave easily either, but I’d say I own that, too.