With Tuesday’s launch of Repowered, a resale marketplace that may generate significant secondhand revenue for the connected fitness startup, Peloton is prepared to assist clients in selling their cycles and treadmills online.
With intentions to expand nationwide within the year, Repowered is presently functioning in New York City, Boston, and Washington, D.C. According to Peloton, the marketplace is currently only accessible to sellers and will open up to buyers if there is sufficient stock.
“The official Peloton resale site where you can find great deals on gently used Peloton equipment or sell your pre-loved pieces for cash,” the company stated on its website.
The platform, according to Peloton, will reduce third-party friction by organizing deliveries and pickups. 70% of the sales will go to the sellers, with Peloton and platform provider Archive dividing the remaining portion. Additionally, sellers might save up to $600 on brand-new equipment.
In order to “help give used equipment a second life,” Peloton claims that the resale market supports its environmental objectives while ensuring product transparency.
“If you’re buying or selling used Peloton equipment, you will have access to the Peloton History Summary that includes details like service history, warranty and more, directly from us,” according to the company. “This ensures transparency about the item’s condition, giving both parties confidence in the transaction.”
Since bikes and treadmills gather dust and clothing after owners stop using them, the fitness company has noticed a decline in the monthly subscriptions that come with their equipment.
According to Peloton’s financial records, a significant portion of its revenue comes from their subscriptions.
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Peloton laid off 15% of its employees last year when CEO Barry McCarthy resigned. Concurrently, the business observed an increase in the selling of its equipment on Trade My Stuff and Facebook Marketplace, which handle transactions and heavy lifting for both buyers and sellers.
The delivery crew also instructs the customer on how to operate the equipment and sets it up.
Peloton said it would assist in facilitating the resale of its own equipment as part of its full-spectrum wellness solutions, which include mindfulness and sleep, following a 13% drop in revenue during the third quarter.
