Exercise equipment company Peloton which already charges a subscription fee for its workouts, has been slammed for adding on a new ‘activation fee’.

For users in the US and Canada who purchase a used Peloton bike, the company is adding a one-time subscription fee of $95 (A$140). “Although these secondary market sales are not from Peloton-owned channels or any of our third-party distribution partners, we want to ensure these new Members receive the same high-quality onboarding experience Peloton is known for,” said Peloton.

The added fee comes on top of the monthly subscription fee that users have to pay for their online classes.

“It’s a pretty egregious money grab that should have plenty of pushback,” one Reddit user wrote in response to the activation fee.

The decision to add the fee to used Peloton bikes which are considerably cheaper than new ones come as the company revealed that used bike sales contributed to a 16 per cent increase in subscriptions in the quarter ended June 30.

Peloton has been struggling over the last few years. It saw its share price rocket to more than $162 (A$238) in December 2020, but now they trade for a fraction of that at around $4.8 (A$7.14).

CEO Barry McCarthy stepped down recently, and the company slashed 15 per cent of its workforce, as the shares of the company tanked.

Peloton’s debt amounted to around A$2.59 billion as of March 31. Last week, it reported its first quarterly sales increase in two years, a small 0.2 per cent increase to $644 million (A$950.02 million).

The business opened in Australia with a flashy showroom in Martin Place, Sydney, in 2021.

The one-time activation fee for used Peloton bikes has not yet been announced for Australia, though the Peloton App One access for yoga, gym and running workouts costs A$16.99, while the bike treadmill and rower workouts available on the Peloton App+ costs A$35 each month.