Technology
Trade My Spin is building a business around used Peloton gear
Peloton has had one of the tumultuous half-decades in tech. The home fitness company has experienced a few of the industry’s biggest ups and downs in a dizzying sequence. This is the story of a high-profile startup that became the main focus of a cult following amongst influencers and fitness fanatics. A worldwide pandemic catapulted the brand to unprecedented heights before overinvestment, product recalls, mass layoffs, and executive departures brought it back all the way down to earth.
Peloton is within the red in mid-2024, but not out of the business. The company avoided a major liquidity crisis with a massive debt refinancing in late May. That marked the top of a month that also saw a 15% staff cut and the departure of CEO Barry McCarthy a little over two years after he took over from founder John Foley.
Peloton’s unique rollercoaster ride has had a wide selection of negative effects. Excitement peaked at the peak of the pandemic, but because the world began to reopen, sales fell. Some who got hooked at the peak of social distancing have remained loyal to the brand. But many others have lost that bond. Some churn is inevitable with any fitness offering, but those numbers have undoubtedly been exacerbated by the reopening of gyms and other alternative exercise options.
As a result, a lot of unused, expensive fitness equipment is taking over space in homes across America; they’re now “coat racks,” as a coworker recently dubbed her Peloton bike. A fast search of Facebook Marketplace reveals row after row of exercise bikes routinely priced around $300 to $500—a fraction of the worth of a latest model (around $1,500). For many once-enthusiastic owners, the equipment has turn into a pain. But for a pair of East Coast entrepreneurs, it’s a chance.
This Change my spin The origin story begins humbly, when current CEO Ari Kimmelfeld began on the lookout for a good deal on a used Peloton bike. As good as the costs were on Facebook and Craigslist, in comparison with buying latest from the manufacturer, the experience had its own problems.
“Buying something that big was a huge inconvenience,” Kimmelfeld, who was then working at Ernst & Young’s strategy consulting arm EY-Parthenon, tells TechCrunch. “Five hundred dollars was a lot of money, and meeting up with a stranger and giving him money for a piece of equipment that you can’t really test. And I live in New York. Moving something like that from a Brooklyn apartment to Manhattan is tough. And there are no guarantees.”
Local logistics
Kimmelfeld began piloting what would turn into Trade My Spin last yr by collecting and selling used Peloton gear. The offering was essentially DIY logistics, removing the friction of shopping for and selling used exercise equipment. It was a conversation with Joey Benjamini that transformed the one-man operation into a profitable business.
Benjamini has built a logistics network based on cooperation with contractors Collectible classicsHis Pennsylvania-based classic automotive dealership relies on drivers to deliver vehicles sold primarily through the used-car marketplace Bring a Trailer.
“Logistics is the most complicated and important part of this business—and the biggest barrier to entry,” Benjamini tells TechCrunch. “We have a database of 1099 vendors who deliver for us. We’re constantly growing a network of drivers who know our company and our processes. Once a driver is trained, we send them out to pick up the bikes. It’s very simple.”
The latest team began working on the Trade My Spin website before looking for funding. The site stays easy, whilst the inventory has expanded to incorporate Peloton treadmills, rowers and a number of accessories. The Buy button displays a bustling marketplace for the service, while Sell displays a form for the equipment you would like to sell. With the positioning up and running, the young company raised a small amount of seed money to scale operations.
Interview with Peloton
The startup has also had multiple conversations with Peloton since its official launch in March. Trade My Spin’s primary focus within the conversations is that its relationship is symbiotic, not parasitic. At first glance, it’s easy to see why Peloton is likely to be hostile toward the corporate.
Seen as a zero-sum game, every used bike sold represents a potential lack of a latest bike sale. While it’s true that keeping bikes in circulation is a net positive on the sustainability front, Peloton shareholders are undoubtedly trying to the sales figure for change.
The math changes, nonetheless, while you consider that Peloton’s ultimate goal is to be a content company that sells equipment, not the opposite way around. Rather than simply selling used bikes as a missed sale on a latest one, Trade My Spin claims that each bike taken out of circulation is one less subscription to Peloton’s class content platform.
“Every bike we take is from someone who isn’t using it,” Benjamini says. “If someone isn’t using the bike, they’re not using the subscription. Peloton is a subscription service. It’s $44 a month. Every time we flip a bike—and we’ve flipped thousands of bikes—they make $500 a year.”
The relationship would little doubt have been different had Peloton been more proactive about moving its own used gear. Ultimately, Trade My Spin stepped in to fill this underserved gap out there.
New turn
Trade My Spin has built a logistics network that permits for same-day or next-day delivery in most major cities within the continental U.S. More distant locations can take as much as five days to satisfy an order, which is still faster than the three to 5 days it takes Peloton to process an order.
In the short term, expansion includes adding more fitness equipment to Trade My Spin’s buying and selling options. In the long term, the corporate desires to leverage its growing network of contractors to incorporate buying and selling all forms of bulky items. Trade My Spin will likely need an extra round of funding to attain this.
“We want to transform,” Benjamini says. “We’re going from where we are now and building a large-scale market for large items with logistics. That’s the game plan, and no one else is going to do it. There’s a barrier to entry and a moat around the business when it comes to drivers.”
Technology
OpenAI may change its nonprofit structure next year
It looks increasingly likely that OpenAI will soon change its complex corporate structure.
Reports earlier this week suggested the AI company was in talks to boost $6.5 billion at a pre-funding valuation of $150 billion. Now Reuters reports that The deal is contingent on OpenAI successfully restructuring and lifting the profit cap for investors.
In fact, based on FortuneCo-founder and CEO Sam Altman told employees at a company-wide meeting that OpenAI’s structure will likely change next year, bringing it closer to a standard for-profit business. OpenAI is currently structured in order that its for-profit arm is controlled by a nonprofit, which seems to have frustrated investors.
“We remain focused on building AI that benefits everyone, and as we’ve said before, we’re working with our board to ensure we’re best positioned to deliver on our mission,” OpenAI said in an announcement. “The nonprofit is core to our mission and will continue to exist.”
Technology
LinkedIn games are really cool
I actually have a weakness that I’m ashamed of, and it isn’t that I’ve watched all of Glee (yes, even the terrible later seasons) or that I’ve read an incredible amount of Harry Potter fan fiction in my life.
My little weakness is playing LinkedIn games.
To answer the plain query: Wait, LinkedIn has games? Yes. In May, LinkedIn launched three puzzle games via LinkedIn News, like New York Times game knockoffs. There’s the logic puzzle Queens (my favorite), the word game Crossclimb (pretty good), and the association game Pinpoint (not great, but oh well).
LinkedIn is taking the classic tech strategy of seeing what works for one more company after which trying to copy that success, even when it could appear odd to play games on knowledgeable networking platform. But it’s no wonder NYT Games inspired that inspiration. In a way The New York Times is a gaming company now – from December 2023 users I spent more time within the NYT Games app than within the news app.
LinkedIn isn’t alone. Everyone has games now. Apple News. Netflix. YouTube. There are so many games we are able to take pleasure in. And yet, once I finish my various New York Times puzzles, I still want more. It’s not that I feel like playing Crossclimb LinkedIn before Connections, however the games are adequate to provide me that sweet dopamine rush.
I often play LinkedIn games in the course of the workday (sorry to my boss). Sometimes it’s because I’m on LinkedIn to envision facts or look up a source, but then I remember I can spare a number of minutes for slightly game. Other times, my mind is foggy from gazing the identical draft of an article for too long, and taking a break to resolve a colourful Queens puzzle makes it easier to return and revisit that Google doc.
But it turns on the market’s a scientific explanation for why we love these quick, once-a-day puzzles a lot.
I recently spoke with DeepWell DTx cofounder Ryan Douglas, whose company relies on the concept playing video games (moderately) can have a positive impact on mental health. In some cases, the transient distraction of a game can pull us out of a negative thought spiral or help us approach an issue from a brand new perspective.
“If you’re playing Tetris, for example, you can’t have a long conversation in your head about how terrible you are, how much you suck, what’s going to happen next week, and so on,” Douglas told TechCrunch.
On a neurobiological level, Douglas explained that after we play, we activate the limbic system within the brain, which is answerable for coping with stress. But even when these stressors are simulated, they accustom the brain to coping with that stress in some ways.
“You start learning on a subconscious level, creating new neural pathways at an accelerated rate and preferentially selecting them on a subconscious level to deal with those problems in the future,” he said. “If you deal with (the stressor) in that particular environment, you gain agency. You have control.”
That’s to not say we must always play Pokémon all day—the video game development tools DeepWell creates are approved for therapeutic use in 15-minute doses. Maybe that’s why we’re so infatuated with games like Wordle, and other games The New York Times (and LinkedIn) has written which have a finite ending. You solve one puzzle a day, and then you definately move on to the following.
Wordle creator Josh Wardle spoke to TechCrunch about his viral success even before The New York Times picked up his game.
“I’m a little suspicious of apps and games that want your endless attention — I worked in Silicon Valley, for example. I know why they do that,” Wardle said. “I think people have an appetite for things that clearly don’t want anything from you.”
But Wardle is correct—after all my beloved LinkedIn games want something from me: my attention. And to be honest, I’ve spent rather a lot more time on LinkedIn in recent months than I ever have.
According to LinkedIn’s data, my behavior isn’t an anomaly. The company found that latest player engagement has increased by about 20% week over week because the starting of July. LinkedIn has also seen strong traction in users starting conversations after playing games. After you finish a game, you may see which of your connections also played, which I imagine some people see as a chance to #network. I don’t do this, but on the other hand, most of my LinkedIn conversations are just me messaging my friends “hi” because for some reason I find that funny.
So go on LinkedIn and have a good time as much as you may… after which, about 4 minutes later, return to the relentless grind of worldwide capitalism.
Technology
These two friends created a simple tool to transfer playlists between Apple Music and Spotify, and it works great
Last yr, I had the misfortune of losing all my playlists after I moved from Apple Music to Spotify. For me, playlists are necessary. They’re snapshots of a certain period in your life; possibly your summer of 2016 had a soundtrack. But traditionally, streaming music services don’t make it easy to take your playlists with you to other platforms.
You can imagine how joyful I used to be to see that Apple Music has created latest playlist uploader through the Data Transfer Initiative (DTI), a group founded by Apple, Google, and Meta to create data transfer tools. The Digital Markets in Europe Act requires these designated “gatekeepers” to fund data transfer tools as a part of a broader solution to Big Tech’s strategy of blocking users from their platforms.
Finally! There was only one big problem. The tools don’t work with the world’s hottest music service, Spotify, which apparently didn’t catch the wave of knowledge transfer (or possibly the regulator doesn’t tell them to). The DTI tool only transfers data between Apple Music and YouTube Music, making it much less useful for most individuals.
DTI Executive Director Chris Riley can be fed up with Big Tech’s blocking policies. He’s trying to get more firms to join the negotiations and make their services more portable.
“Over the last decade, we’ve kind of blended into this world, just feeling trapped,” Riley told TechCrunch. “I don’t think enough people know that this is something they need to know.”
With DTI limitations in mind, Riley suggested I move my playlists from Apple Music to Spotify using Soundfree third-party tool. Instead of working directly with streaming services, Soundiiz builds portability tools through existing APIs and acts as a translator between services. Within minutes, I used to be able to connect my accounts, transfer my playlists, and start listening to my old Apple Music playlists on Spotify. It was amazing and easy.
Soundiiz allows you to transfer playlists between Apple Music, Spotify, YouTube Music, Amazon Music, Tidal, Deezer, SoundCloud, and 20 other streaming services I’ve never heard of. There’s a simple user interface for connecting streaming services and choosing the playlists you would like to transfer, including ones another person has created.
The story behind Soundiiz may explain why it works so well and cheaply. It was created in 2013 by two friends from France, Thomas Magnano and Benoit Herbreteau, who loved listening to music while coding together. In the evenings, they decided to create a music search interface with input from everywhere in the web. In the method, they created a useful tool.
They never created a music search interface, however the playlist uploader became Soundiiz.
“I had to manipulate the API and test the fit between services. And while I was doing that, I was creating playlists and moving them between services, just for me internally,” Magnano told TechCrunch. “I presented this feature to a colleague of mine and we thought, ‘Oh, this is useful to me; maybe it’s useful to someone else.’”
In 2015, Soundiiz got its big break when it partnered with Tidal, the music service founded by Jay-Z. The music platform was trying to make it easier for people to leave Spotify and join Tidal with all the identical playlists, and Soundiiz helped with that. But Magnano says they made sure Tidal also let people export playlists, not only import them — something they require from every music service API they work with.
Then a lot more people began using the service, and the founders made Soundiiz their full-time job, but they kept their values. The two founders make a living from Soundiiz, but they tell TechCrunch they’re “not looking to get rich.” Magnano says Soundiiz has never sought outside investment to keep prices low, and the founders retain control over their project.
There are limitations to the free Soundiiz though – a number of the longer playlists might be shortened (limited to 200 songs). You even have to transfer playlists one after the other, and every one takes about a minute, so transferring a dozen or so playlists can take a while. Soundiiz offers a premium plan ($4.50 monthly, which you’ll cancel after transferring) to get around these limitations.
The two founders are still the one employees of Soundiiz, regardless that the corporate has grown: Soundiiz has helped hundreds of thousands of individuals move over 220 million playlists over the past 10 years. According to Magnano, they’ve never spent a dime on marketing, but he says they’ve never had to.
“If you were to Google ‘how to transfer Deezer to Spotify’ in 2012, there was no answer,” Magnano said. “So Soundiiz became the first result in Google search when we launched, and we’ve been doing great in SEO ever since.”
Magnano says Spotify likely has more to lose than to gain by creating a playlist uploader like Apple and Google, and he doesn’t expect that to change anytime soon. However, he says that every one of those streaming services are aware of what Soundiiz is doing and are okay with it — some even promote it of their FAQs. That said, it’s unlikely that any of them would promote playlist uploaders like Soundiiz greater than this.
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