Peloton to charge $95 activation fee for used equipment

• Peloton is implementing a one-time $95 fee for used equipment.
• The move aims to boost revenue and address concerns about cannibalization from cheaper used products.
• The announcement comes amid the rise of used equipment marketplaces like Trade My Spin.

Photo by Peloton

In a shareholder letter released Thursday, Peloton has announced a new strategy to increase revenue and it includes a one-time fee of $95 (CAD 126) for used equipment activation in the US and Canada.

This so-called “used equipment fee” fee prevents lower-priced used products from cannibalizing new equipment sales.

The announcement comes as services like Trade My Spin have gained popularity, offering a marketplace and logistics network for used Peloton equipment.

In response to the new fee from Peloton, Trade My Spin has announced a $95 "activation rebate" for buyers.