- 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.
Do you see an alternative? Each year more companies move to a subscription model, even when it doesn’t make the slightest bit of sense. In many cases if you have the time to do proper research and/or a lot of technical savvy, you can find alternatives from companies no one recognizes. Most people don’t have the time or know-how, and the companies that like subscription models are spending billions making sure their names are the only ones people think exist.
Update consumer protection laws and actually enforce them. Laws that were written back when tech would come with the schematics.