Peloton introduces Repowered platform for reselling used exercise equipment
- Peloton has launched Repowered, a new platform for reselling used fitness equipment in select U.S. cities.
- The initiative aims to address declining subscription rates and promote sustainability by extending the life cycle of equipment.
- Sellers will receive a significant portion of sales proceeds, while buyers will have access to detailed product history to ensure confidence in transactions.
In recent months, Peloton has taken steps to enhance its customer service and sustainability efforts by launching a resale marketplace called Repowered, which currently operates in New York City, Boston, and Washington, D.C. This new platform allows sellers to list their used Peloton bikes and treadmills for sale online while streamlining the logistics involved in the transaction process. Peloton announced that it would oversee pickups and deliveries of the equipment, facilitating smoother transactions and cutting down third-party friction that previously hindered resale activities. Sellers using Repowered will receive 70% of the sale proceeds, while the company will divide the remaining revenue with its partner, Archive, who is managing the platform. This initiative comes in response to changing consumer behaviors, as Peloton has noted a decline in monthly subscriptions associated with their equipment. Many bikes and treadmills have been left unused, often accumulating dust and clothing, leading to a significant drop in revenue for the company. Last year, in the midst of these challenges, Peloton made the difficult decision to cut 15% of its workforce and searched for solutions to boost sales. They reportedly experienced an uptick in resale activities on platforms like Facebook Marketplace and Trade My Stuff. Peloton’s executive leadership recognized the potential in facilitating the resale of their own fitness equipment directly, obeying the demand for a sustainable solution that allows equipment to have a second life rather than contributing to waste. Additionally, consumers on Repowered will benefit from increased transparency in transactions. The company announced that buyers and sellers would have access to a Peloton History Summary, which includes important information such as service history and warranty details. This feature is designed to foster trust and confidence among both parties involved in the transaction. Overall, Repowered represents an important shift for Peloton in diversifying its offerings and aligning with broader sustainability goals in the fitness industry, as it adapts to modern market dynamics and consumer preferences.