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.
conciselyverbose@sh.itjust.works 2 months ago
For the privilege of paying $45/month for video classes?
Boozilla@lemmy.world 2 months ago
I’ve never understood the appeal. Seems much cheaper, easier, and more fun to find a video you like online and just use that. Could be racing down a mountain road. Or a spin class. Or that scene from Monty Python where the topless women chase the guy off a cliff.
conciselyverbose@sh.itjust.works 2 months ago
I had assumed that they used the smart shit to adjust resistance automatically and whatever, but I googled out of curiosity on hacking one, and apparently, you still have to reach down and use a knob.
PlaidBaron@lemmy.world 2 months ago
I bought a simple spin bike thirdhand. Guy who owned it before me got it from a gym. You twist a knob and it increases pressure on a leather brake. Its built like a tank.
Its great and like you say, if I wanted I could just look up spin videos on youtube for free.
Why would I bother with a Peloton?
sugar_in_your_tea@sh.itjust.works 2 months ago
Yup, just get some rollers and use your regular bike.
Pheonixdown@lemm.ee 2 months ago
My wife has a NordicTrack bike, it auto adjusts resistance and incline. Insane people would pay more and not even get that.
Vanth@reddthat.com 2 months ago
The few people I know who are into the Pelaton community do it for the competition/gamification element. They watch their status against global leaderboards and are highly motivated by it.
For those that it works for, great. I am highly motivated by competition, but those prices are too rich for my blood.
Maybe there are also people into Pelaton who are like those who pay a monthly gym subscription even if they have space at home? And could buy a home setup that saves them money. The monthly pay makes them commit financially and motivates them to go to the gym consistently.
Imgonnatrythis@sh.itjust.works 2 months ago
Espresso makes more gamified bikes but also have very expensive subscription packages. These are way more fun imo than what peleton offers. Nonetheless they still feel very primitive to anyone familiar with modern gaming. It’s a markets pace that I’m surprised isn’t better tapped, but the subscription stuff is nonsense. Just give me a pack of virtual tours and the option to buy some additional ones. Offering peer to peer racing etc should be a very minimal cost. What I’d really like is a Sim that taps into Google street view for riding where I want virtually