Peloton has just started an economics experiment which will give further insight into how valuable its services are regarded by the marketplace.
What kind of golden parachute is attached to that lead balloon?
Peloton to charge $95 activation fee for used bikes
41–50 of 172 posts
Re: Peloton to charge $95 activation fee for used bikes
#42if only they can put a tax on the air we breath
nah, they'll start with each email you send. only, they'll call it postage to avoid getting tagged with raising taxes
Re: Peloton to charge $95 activation fee for used bikes
#43Probably a worthwhile addendum that they had a "restructuring" in May, laying off 15% of their staff, ~400 people, and their CEO stepped down. They've yet to find a replacement CEO, still running under interim leadership.
Re: Peloton to charge $95 activation fee for used bikes
#44Earlier quoted context omitted.
> Isn't capitalism great? Does "capitalism" now just mean that businesses can do whatever they want? Consumer rights are awful in the United States, but that isn't because our economy is capitalistic. It's because our government is inept.
I think by “capitalism” they mean this pervasive attitude of trying to extract money to customer in every way possible.
But that's litterally not what capitalsim is. Calling that "capitalism" is no better than calling all regulations "communism".
It just serves to poison conversations on the subject.
Re: Peloton to charge $95 activation fee for used bikes
#45The FTC's Lina Khan said mistreatment of customers signals that a company has monopoly power. Maybe Peloton is heading that way?
Weight gain is a sign of pregnancy. I've gained weight... A̶m̶ I̶ P̶r̶e̶g̶n̶a̶n̶t̶?̶ Am I pregnant? It's highly doubtful - I've got the wrong plumbing.
There can be lots of reasons that a company mistreats their customers. I would be very hesitant to say that every instance of mistreatment of customers is an indication of monopoly status... and while they are (were?) the most popular ...
https://www.traqline.com/newsroom/blog/us-fitness-equipment-...
> As of September 2023, the most popular Fitness Equipment manufacturer continued to be Peloton, in both unit (11%) and dollar (25%) share.
> However, as seen with outlet share, Peloton saw decreases in brand share. In dollars sold, Peloton saw the largest decrease in share across all Fitness Equipment brands, with a loss of 4 points YOY; in dollar share, Peloton lost 1 point.
That does not look like a monopoly.
Rather this looks more like desperation from a company on its way down trying to milk any revenue out of its customer base.
Re: Peloton to charge $95 activation fee for used bikes
#46They are losing money still so desparate moves like this I guess make sense, but adding friction to the new subscriber workflow just seems wild. There's a reason why just about every subscription out there offers free trials/discounted first months. It's to get you in the door. It's not even as if the bike is disabled when bought used, you can just use it like any other spin bike happily. This ONLY effects people who…
> It's not even as if the bike is disabled when bought used, you can just use it like any other spin bike happily.
While that’s true, a Peloton attracts a premium price above regular spin bikes. So if you had no intention of using the software you’d just buy a cheaper bike. If you do intend to use it you now have to add $95 to whatever price you’re paying.
Re: Peloton to charge $95 activation fee for used bikes
#47... Isn't capitalism great? I remember a thread on here a while back where some folks were sharing their peloton-alike setups and sadly I've lost the bookmark for it. Isn't it possible to hook a road bike up to some kind of 'bike treadmill' or such and go on virtual rides (maybe with an iPad or a tv or something infront of it?). With the kinds of money Peloton are charging, it did seem like a much better deal, and yo…
It does seem odd for Peloton to put any friction up to a new subscriber, given that's where they really make their money. There are plenty of other setups with various levels of connectedness. Cyclists I know love Zwift, though they also sell a bike type thing and their kickers are not exactly cheap. I'd argue that Peloton is likely still the best at home spin studio replacement if that's what people are looking for.…
> One last point is that I think Peloton gets unfairly targeted for non-use. Gyms, all fitness equipment, even things like boats and motorcycles are frequently bought and never used. Just how consumerism works.
What's different with a Peloton vs others is that there's a ongoing subscription cost, so it sitting around unused with a subscription is a real monthly cost. A better comparison would be a gym membership. Also the Peloton takes a lot of floor place in your home and can't really be stored away.
Re: Peloton to charge $95 activation fee for used bikes
#48... Isn't capitalism great? I remember a thread on here a while back where some folks were sharing their peloton-alike setups and sadly I've lost the bookmark for it. Isn't it possible to hook a road bike up to some kind of 'bike treadmill' or such and go on virtual rides (maybe with an iPad or a tv or something infront of it?). With the kinds of money Peloton are charging, it did seem like a much better deal, and yo…
> Isn't capitalism great? Does "capitalism" now just mean that businesses can do whatever they want? Consumer rights are awful in the United States, but that isn't because our economy is capitalistic. It's because our government is inept.
I think the root issue is lack of consumer awareness and informedness.
In an ideal spherical free market in a vacuum, nobody would buy even slightly enshittified things, because a rational educated consumer understands how it erodes the whole market and thus harms them personally.
In reality, of course, consumers frequently barely know anything about what they’re buying, and en masse will happily trade away any rights for a meager discount (or nothing at all), without even really knowing it. The worst part is that there is no effort to fix this - only some crutches and legal duct tape to protect consumers from most blatant abuse.
I suspect that with information gaps and lack of full transparency, no matter if it’s some perfect free market capitalism, textbook utopian communism, or anything realistic in between - things are still going to be broken (just with different flavors).
In other words, capitalism is a distraction, and lack of even just a strive to have true well-informed competition (which is fundamental to any socioeconomic model, not just capitalism) is the reason we can’t have nice things.
Re: Peloton to charge $95 activation fee for used bikes
#49Probably a worthwhile addendum that they had a "restructuring" in May, laying off 15% of their staff, ~400 people, and their CEO stepped down. They've yet to find a replacement CEO, still running under interim leadership.
Perhaps when the current Sonos CEO is freed up, which might be quite soon, he can take on this one.
Re: Peloton to charge $95 activation fee for used bikes
#50They are losing money still so desparate moves like this I guess make sense, but adding friction to the new subscriber workflow just seems wild. There's a reason why just about every subscription out there offers free trials/discounted first months. It's to get you in the door. It's not even as if the bike is disabled when bought used, you can just use it like any other spin bike happily. This ONLY effects people who…
> It's not even as if the bike is disabled when bought used, you can just use it like any other spin bike happily. While that’s true, a Peloton attracts a premium price above regular spin bikes. So if you had no intention of using the software you’d just buy a cheaper bike. If you do intend to use it you now have to add $95 to whatever price you’re paying.
Do they command a premium when used?
I have one that I got for free, YMMV.