Peloton slammed over $95 activation fee for used bikes — on top of monthly fee: ‘egregious money grab'

Core Viewpoint - Peloton faces backlash for introducing a $95 "equipment activation fee" for used bike purchases, which many consumers perceive as an exploitative move given the existing $44 monthly subscription fee [1][2][4] Group 1: Financial Performance - Peloton's stock closed at $4.90, a significant decline from its peak of $162 in 2020 [4] - The company reported a slight quarterly sales increase of 0.2%, marking its first sales growth in two years [4] - Used bike sales contributed to a 16% increase in subscriptions for the quarter ending June 30 [4] Group 2: Customer Reaction - Consumers expressed frustration on social media, labeling the fee as a "money grab" and a "scam" [1][2] - A start-up, Trade My Spin, criticized the fee as a tax on the used Peloton market and is offering a $95 rebate to offset the cost [6] Group 3: Company Justification - Peloton stated that the activation fee is intended to provide a high-quality onboarding experience for new members [2][6] - The fee includes a "virtual custom fitting" and a history summary of the second-hand bikes [6] Group 4: Market Context - Trade My Spin sells used Peloton bikes for $500 to $700, significantly cheaper than new bikes priced between $1,200 and $3,000 [8] - Approximately 25% of the 4.5 million Peloton bikes and treadmills manufactured since 2019 are reportedly not in use, although Peloton disputes this claim [8]