In a shareholder letter released Thursday, Peloton outlined its ongoing strategy to regain its financial footing. It highlights the implementation of a new one-time “used equipment fee” of $95 USD / $126 CAD. The move is an effort to squeeze additional revenue from second-hand products, over concerns that cheaper, slightly used bikes, treadmills and rowers could cannibalize used sales.
Peloton’s failure to capitalize on the space has led to the rise of services like Trade My Spin, a combination used equipment marketplace and logistics network that transfers the machines to their new home. Following the announcement of the new fee, the startup announced a $95 “activation rebate” for buyers.
