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Peloton To Start Charging Subscribers With Used Equipment $95 Activation Fee
Thursday August 22, 2024. 04:47 PM , from Slashdot
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. From a report: 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. During its fiscal fourth quarter, which ended June 30, Peloton said it saw a 'steady stream of paid connected fitness subscribers' who bought hardware on the secondary market. The company said the segment grew 16% year over year.
'We believe a meaningful share of these subscribers are incremental, and they exhibit lower net churn rates than rental subscribers,' the company said in a letter to shareholders. '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. Read more of this story at Slashdot.
https://slashdot.org/story/24/08/22/1447234/peloton-to-start-charging-subscribers-with-used-equipmen...
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