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Peloton announces $95 “used equipment activation fee” (arstechnica.com)

submitted 3 months ago by AnActOfCreation@programming.dev to c/technology@lemmy.world

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Peloton is introducing a $95 "used equipment activation fee" for bikes purchased from outside its official channels in the US and Canada, aiming to boost revenue and maintain onboarding quality for new subscribers.
The fee has sparked criticism as it reduces the cost savings typically associated with buying secondhand equipment and diverges from practices in other industries, potentially discouraging used market purchases.
Peloton's hardware sales continue to decline, but subscription revenue has seen slight growth; the company still faces financial struggles despite cost-cutting measures and layoffs.

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[-] barsquid@lemmy.world 4 points 3 months ago

If more people were like you we wouldn't have such shitty companies. They'd still be thirsty for every last penny but they'd know they cannot get away with it.

[-] Animated_beans@lemmy.world 3 points 3 months ago* (last edited 3 months ago)

I think it is the opposite. Because everyone knows they don't need the subscription, right or wrong Peloton needs to make up for subscriptions losses by introducing these one-time fees.

[-] SreudianFlip@sh.itjust.works 1 points 3 months ago

So, you mean the proper response to the failure of a shitty business model is to introduce a worse business model?

this post was submitted on 23 Aug 2024

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