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The Markets
by Proactive
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The Markets
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Proactive UK has moved.
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Leisure, gaming and gambling

Peloton brings in fee for second-hand bikes

Peloton Interactive Inc (NASDAQ:PTON) is to start charging people who buy bikes second-hand so they can use them.

Users will have to hand over a US$95 (£72) “activation fee” for access to its fitness platform.

Customers who use Peloton’s official resale channels to buy a second-hand bike won’t have to pay the activation fee however, though prices are much higher than on platforms such as Ebay.

In a statement, the US firm said the fee was so that second-hand users “receive the same high-quality onboarding experience”.

Access to Peloton’s range of programmes and simulations already costs £24 a month regardless of the bike being new or second hand.

News of the charge, which will initially apply to the US and Canada, followed a 35% surge in Peloton’s share price on Thursday as it slashed quarterly losses to US$30.5 million from US$242 million a year ago.

In a letter to shareholders, Peloton said: “We view the secondary market as an important channel and will continue to improve the member experience.”

Shares had retreated 7% in early trades Friday to US$4.23.

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