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.
$44 is more than my gym membership, and they have dozens of bikes and other equipment. These Peloton people are diseased.
Does your gym have live guided classes for under 40 a month?
For 15€/month
Yes
Mine does. They’re group classes, but it’s included with the standard $40/month plan (or $5/day), less if you buy a family plan. There are cheaper gyms around, so a single person could probably get a better deal if they only need spinning classes.
Most YMCA locations have cycle classes included with the membership.
Forgot about the Y honestly, but my local one is $60+
Yeah, that’s pretty standard for the Y, but that’s the cost for everything–weights, track, courts, swimming pools, most classes, personal training, childcare. As opposed to Peloton, which is $50 for just the spinning class.