• 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.
    • billbasher@lemmy.world
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      3 months ago

      My thoughts exactly. This seems like a short term play to boost the stock price, let execs get out of the market, then sell off the company before it goes under.

      Also how are they gonna prove you didn’t buy it before the announcement and just didn’t register/use it until after? Seems to me that’s gonna be sticky in the eyes of copyright terms & conditions

      • rottingleaf@lemmy.world
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        3 months ago

        let execs get out of the market,

        A new business architecture without this particular flaw seems to be in pretty capitalist demand today.

        Maybe something about conflict of interest being illegal for such positions. Maybe just cooperatives with modern technologies to help make them more organized.

      • piecat@lemmy.world
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        3 months ago

        I don’t get what it has to do with copyright?

        It’s as simple as they built the equipment to require an app. And it needs the cloud, so its either accept the license or stop using the hw.

        It’s happening everywhere.