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Peloton to charge $95 activation fee for used bikes

The secondary market represents a unique opportunity for Peloton to generate new, high-margin subscription revenue without any upfront cost.

Peloton on Thursday said it will start charging new subscribers a one-time $95 activation fee if they bought their hardware on the secondary market as more consumers snag lightly used equipment for a fraction of the typical retail price. The used equipment activation fee for subscribers in the U.S. and Canada comes as Peloton starts to see a meaningful increase in new members who bought used Bikes or Treads from peer-to-peer markets such as Facebook Marketplace. "It's also worth highlighting that this activation fee will be a source of incremental revenue and gross profit for us, helping to support our investments in improving the fitness experience for our members," interim co-CEO Christopher Bruzzo later added on a call with analysts.

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