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Peloton to ruin the secondhand market by charging a $95 ‘used equipment activation fee’

Peloton will now charge a $95 ‘used equipment activation fee’ to basically ruin the secondhand market. It doesn’t apply to refurbished models bought directly from the company.

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. 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. Also, the $95 fee doesn’t apply to those who buy refurbished machines directly from the company or from any of its third-party distribution partners.

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