Peloton Enters Resale Market with Repowered Platform, Offering AI Pricing and Seller Incentives

Peloton has introduced a new marketplace called Repowered, designed for reselling used Peloton bikes, treadmills, and gear. The platform allows members to list their equipment for sale, using an AI-powered pricing tool to help suggest fair prices. Sellers retain control over the final listing price, which is informed by factors like the product’s age.

Peloton Offers Seller Incentives and Buyer Benefits to Grow Used Equipment Market

Sellers receive 70% of the sale price, with the remainder shared between Peloton and its partner platform, Archive. To incentivize sellers, Peloton offers discounts on new equipment purchases. Buyers benefit from a reduced activation fee on used products, dropping from $95 to $45, and can review the item’s history before purchase. Delivery options are also available for an additional fee.

The resale market for Peloton equipment is expanding rapidly, driven by owners who no longer use their machines. Peloton aims to streamline and secure this secondary market to attract new customers while providing a trustworthy buying experience. The company sees this as a strategic growth opportunity, tapping into users who previously bought through peer-to-peer platforms like Facebook Marketplace.

Peloton Benefits from Subscriptions and Enters Resale Market with Repowered Launch

While many owners cancel their monthly Peloton subscriptions, which generate the majority of Peloton’s revenue, the company has noticed that subscribers who buy used equipment tend to maintain their memberships longer. Peloton is already benefiting from subscription revenue linked to secondary market buyers and now plans to capture direct revenue from resales through Repowered.

Repowered will initially launch in beta across New York City, Boston, and Washington, D.C., starting with seller access before opening to buyers nationwide. The marketplace directly competes with peer-to-peer platforms like Facebook Marketplace and startups such as Trade My Stuff, which also focus on used Peloton gear. Although Peloton met with Trade My Stuff’s founder, Repowered operates independently from the startup.