- 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.
Company: we’re limping, how can we recover and pick up the pace?
CEO: How about we shot ourselves on the foot?
Company: die
CEO: Why would customer do this to us?