Close Menu
TechBrunchTechBrunch
  • Home
  • AI
  • Apps
  • Crypto
  • Security
  • Startups
  • TechCrunch
  • Venture

Subscribe to Updates

Subscribe to our newsletter and never miss our latest news

Subscribe my Newsletter for New Posts & tips Let's stay updated!

What's Hot

Kleida Martiro leads the conversation on AI scale at TC All Stage

July 1, 2025

The best iPad apps to increase productivity and make your life easier

July 1, 2025

Kathy Gao brings a real playbook to every stage

July 1, 2025
Facebook X (Twitter) Instagram
TechBrunchTechBrunch
  • Home
  • AI

    OpenAI seeks to extend human lifespans with the help of longevity startups

    January 17, 2025

    Farewell to the $200 million woolly mammoth and TikTok

    January 17, 2025

    Nord Security founder launches Nexos.ai to help enterprises move AI projects from pilot to production

    January 17, 2025

    Data proves it remains difficult for startups to raise capital, even though VCs invested $75 billion in the fourth quarter

    January 16, 2025

    Apple suspends AI notification summaries for news after generating false alerts

    January 16, 2025
  • Apps

    The best iPad apps to increase productivity and make your life easier

    July 1, 2025

    When the app moves further away from Instagram, the thread launches its own DM inbox

    July 1, 2025

    Grammarly gets AI email client superhuman

    July 1, 2025

    Meta adds business voice calls to WhatsApp and explores recommendations for AI-powered products

    July 1, 2025

    Sri Mandir keeps investors hooked as digital dedication grows

    July 1, 2025
  • Crypto

    Vitalik Buterin reserves for Sam Altman's global project

    June 28, 2025

    Calci will close a $185 million round as rival Polymeruk reportedly seeks $200 million

    June 25, 2025

    Stablecoin Evangelist: Katie Haun's Battle of Digital Dollars

    June 22, 2025

    Hackers steal and destroy millions of Iran's biggest crypto exchanges

    June 18, 2025

    Unique, a new social media app

    June 17, 2025
  • Security

    US government overthrows North Korea's major “workers” management

    June 30, 2025

    Mexican drug cartel hackers spy on FBI officials' phones to track and kill informants, the report says

    June 30, 2025

    FBI, cybersecurity firms say prolific hacking crews are currently targeting airlines and transportation sectors

    June 28, 2025

    Prolific cybercrime gangs currently targeting the airline and transportation sector

    June 27, 2025

    US and French authorities confirm arrest of a violation form hacker

    June 26, 2025
  • Startups

    7 days left: Founders and VCs save over $300 on all stage passes

    March 24, 2025

    AI chip startup Furiosaai reportedly rejecting $800 million acquisition offer from Meta

    March 24, 2025

    20 Hottest Open Source Startups of 2024

    March 22, 2025

    Andrill may build a weapons factory in the UK

    March 21, 2025

    Startup Weekly: Wiz bets paid off at M&A Rich Week

    March 21, 2025
  • TechCrunch

    OpenSea takes a long-term view with a focus on UX despite NFT sales remaining low

    February 8, 2024

    AI will save software companies' growth dreams

    February 8, 2024

    B2B and B2C are not about who buys, but how you sell

    February 5, 2024

    It's time for venture capital to break away from fast fashion

    February 3, 2024

    a16z's Chris Dixon believes it's time to focus on blockchain use cases rather than speculation

    February 2, 2024
  • Venture

    Kleida Martiro leads the conversation on AI scale at TC All Stage

    July 1, 2025

    Kathy Gao brings a real playbook to every stage

    July 1, 2025

    David George on the Future to be released in 2025

    July 1, 2025

    Mo Jomaa breaks down all IPO preparations for TC founders in stages

    July 1, 2025

    At every stage of TechCrunch, Charles Hudson tells us what investors really see

    June 30, 2025
TechBrunchTechBrunch

Trade My Spin is a business focused on selling used Peloton equipment.

TechBrunchBy TechBrunchAugust 3, 20246 Mins Read
Facebook Twitter Pinterest Telegram LinkedIn Tumblr WhatsApp Email
Share
Facebook Twitter LinkedIn Pinterest Telegram Email


Peloton has had one of the most eventful five years in tech. The home fitness company experienced industry highs and lows in dizzying succession. This is the story of a buzzy startup that grew into a cult following among influencers and fitness enthusiasts. A global pandemic catapulted the brand to unknown heights, only to then see it plummet back to earth amid overinvestment, recalls, mass layoffs, and executive departures.

As of mid-2024, Peloton is in decline but not bankrupt. The company avoided a major liquidity crisis with a major debt refinancing in late May, the same month it cut 15% of its workforce and saw CEO Barry McCarthy step down after just over two years in the role after succeeding founder John Foley.

Peloton's high-profile, roller-coaster ride has had far-reaching ripple effects. Excitement was at a fever pitch during the peak of the pandemic, but sales plummeted as the world began to reopen. Some people who got hooked during the peak of social distancing have remained loyal to the brand; many others, however, have lost that connection. While some customer churn is inevitable for any fitness service, the reopening of gyms and other exercise alternatives has undoubtedly exacerbated these numbers.

The result is a mountain of unused, expensive fitness equipment taking up space in homes across America. They've now become, as a colleague recently called Peloton bikes, “clothes racks.” A quick search on Facebook Marketplace turns up row after row of exercise bikes, often for sale for $300 to $500; that's just a fraction of the price of new models (around $1,500). For many of their once-enthusiastic owners, the equipment has become a liability. But for two East Coast entrepreneurs, it's an opportunity.

Trade My Spin had its humble beginnings when current CEO Ari Kimmelfeld began looking to buy used Peleton bikes cheap. While the prices on Facebook and Craigslist were cheaper than buying new from the manufacturer, the experience came with its own challenges.

“It was a huge inconvenience to buy something that bulky,” Kimmelfeld, who worked at EY-Parthenon, Ernst & Young's strategy consulting division, told TechCrunch at the time. “$500 is a lot of money, and you're paying for equipment you don't even get to meet with someone and try out. Plus, I live in New York City, and it would be a pain to transport that stuff from my Brooklyn apartment to Manhattan. Plus, it doesn't have a warranty.”

Local logistics

Trade my spins

Last year, Kimmelfeld piloted what would become Trade My Spin, a service that collected and sold used Peloton equipment. At its core, the business was a DIY logistics service that removed the friction from buying and selling used exercise equipment. It was a conversation with Joey Benjamini that transformed the one-man operation into a viable business.

Benjamini built a contract-based logistics network for Collectible Classics, his Pennsylvania-based vintage car dealership that relies on contract drivers to deliver vehicles sold primarily through used-car platform Bring a Trailer.

“Logistics is the most complex and most important part of this business, and it also has the biggest barrier to entry,” Benjamini told TechCrunch. “We have a database of 1099 contractors who make deliveries, and we're constantly growing our network of drivers who know us and our processes. Once our drivers are trained, we send them out to pick up the bikes. It's that simple.”

The new team began work on the Trade My Spin site prior to the funding. The page remains simple, even though the inventory has grown to include Peloton treadmills, rowing machines, and a variety of accessories. Clicking the Buy button takes you to a vibrant marketplace of services, while clicking the Sell button takes you to a form for the equipment you want to sell. With the site complete, the young company raised a small amount of pre-seed funding to scale its operations.

Talk to Peloton

The startup has also had multiple conversations with Peloton since it officially launched in March. A key goal of Trade My Spin's calls is to convince them that their relationship is symbiotic, not parasitic. At first glance, it's easy to see why Peloton is hostile toward the company.

Viewed as a zero-sum game, each used bike sold represents a potential loss in the sale of a new bike, and while keeping bikes in circulation is certainly a sustainability win, Peloton shareholders are no doubt keeping their eye on the bottom line in hopes of a turnaround.

But the calculus changes when you consider that Peloton's ultimate goal is to be a content company that sells hardware, not the other way around: Rather than simply viewing a bike sale as a missed sale on a new bike, Trade My Spin's pitch is that for every bike taken out of circulation, it represents one less subscription to a class on Peloton's content platform.

“The bikes we take back are from people who aren't using them,” Benjamini says. “If they're not using their bikes, they're not subscribing. Peloton is a subscription service. It's $44 a month. Every time we resell a bike, and we've resold thousands of bikes, they make $500 a year in profit.”

Things would no doubt have been different if Peloton had been more aggressive in selling its own used equipment, but ultimately, Trade My Spin stepped in and filled a gap in the market.

A new spin

Trade My Spin Founders (from left): Ari Kimmelfeld, Joey Benjamini

Trade My Spin has built a logistics network that allows it to offer same-day or next-day delivery in most major cities in the continental U.S. For more remote locations, it can take up to five days to complete, but that's still faster than the three to five days it takes Peloton to fulfill an order.

In the short term, Trade My Spin's expansion goal is to add fitness equipment to its buying and selling options. In the long term, the company hopes to leverage its growing network of contractors to handle the buying and selling of all kinds of tricky items. Trade My Spin will likely need to raise additional funding rounds to get there.

“We want to transform,” Benjamini said, “from where we are today to becoming a marketplace for large, bulky items with logistics. That's our plan, and no one else can do that. We have a barrier to entry in terms of getting drivers, and we have a moat around our business.”



Source link

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

7 days left: Founders and VCs save over $300 on all stage passes

March 24, 2025

AI chip startup Furiosaai reportedly rejecting $800 million acquisition offer from Meta

March 24, 2025

20 Hottest Open Source Startups of 2024

March 22, 2025

Andrill may build a weapons factory in the UK

March 21, 2025

Startup Weekly: Wiz bets paid off at M&A Rich Week

March 21, 2025

Wayve CEO shares his key elements for scaling autonomous driving technology

March 21, 2025

Leave A Reply Cancel Reply

Top Reviews
Editors Picks

7 days left: Founders and VCs save over $300 on all stage passes

March 24, 2025

AI chip startup Furiosaai reportedly rejecting $800 million acquisition offer from Meta

March 24, 2025

20 Hottest Open Source Startups of 2024

March 22, 2025

Andrill may build a weapons factory in the UK

March 21, 2025
About Us
About Us

Welcome to Tech Brunch, your go-to destination for cutting-edge insights, news, and analysis in the fields of Artificial Intelligence (AI), Cryptocurrency, Technology, and Startups. At Tech Brunch, we are passionate about exploring the latest trends, innovations, and developments shaping the future of these dynamic industries.

Our Picks

Kleida Martiro leads the conversation on AI scale at TC All Stage

July 1, 2025

The best iPad apps to increase productivity and make your life easier

July 1, 2025

Kathy Gao brings a real playbook to every stage

July 1, 2025

Subscribe to Updates

Subscribe to our newsletter and never miss our latest news

Subscribe my Newsletter for New Posts & tips Let's stay updated!

© 2025 TechBrunch. Designed by TechBrunch.
  • Home
  • About Tech Brunch
  • Advertise with Tech Brunch
  • Contact us
  • DMCA Notice
  • Privacy Policy
  • Terms of Use

Type above and press Enter to search. Press Esc to cancel.