Peloton to start charging subscribers with used equipment $95 activation fee

Core Viewpoint - Peloton is introducing a one-time $95 activation fee for new subscribers who purchase used equipment, aiming to capitalize on the growing trend of consumers buying second-hand fitness machines [1][2] Group 1: Activation Fee and Revenue Generation - The activation fee is expected to generate incremental revenue and gross profit, supporting Peloton's investments in enhancing the fitness experience for members [2] - The company has observed a 16% year-over-year growth in new members who acquired used Bikes or Treads from secondary markets [1] Group 2: Market Dynamics and Consumer Behavior - There are approximately one million unused Peloton Bikes globally, representing a potential revenue source for the company [3] - The secondary market offers significant savings for consumers, with used Bikes priced at $499 compared to $1,445 for new ones, which may not deter purchases despite the activation fee [3][4] Group 3: Customer Experience and Support - New members purchasing used equipment will receive a high-quality onboarding experience, including virtual custom fittings and ride history summaries [4] - Peloton is also providing discounts on accessories for new members, aiming to enhance their overall experience [5]