ClassPass
{{Short description|American fitness startup company based in New York City}}
{{Infobox company
| name = ClassPass
| industry = Physical fitness
| founded = {{Start date and age|2013|06|01}}
| founders = Payal Kadakia
Sanjiv Sanghavi
| location = New York City, New York, U.S.
| area_served = Worldwide
| key_people = Fritz Lanman, CEO
Payal Kadakia, Chairwoman
| parent = Mindbody Inc.
| website = {{URL|https://classpass.com/}}
| footnotes = {{cite news | url=https://classpass.com/about/team | title=ClassPass: Meet the Team}}
}}
ClassPass is an American company operating a subscription platform for fitness. Founded in 2013, it was acquired by Mindbody Inc in 2021. Just completed a company wide layoff consisting of their domestic sales team, April 2025
History
The company was founded by Payal Kadakia and Sanjiv Sanghavi as Classivity in 2010.{{cite news |last=Sorvino |first=Chloe |date=June 17, 2016 |title=Why Failing Twice Helped ClassPass's Payal Kadakia Build A $50 Million (And Growing) Fortune |url=https://www.forbes.com/sites/chloesorvino/2016/06/17/why-failing-twice-helped-classpasss-payal-kadakia-build-a-50-million-and-growing-fortune/ |work=Forbes}}{{Cite news |last=Crockett |first=Zachary |date=10 October 2017 |title=Sh*t, I'm F*cked: Payal Kadakia, Founder of ClassPass |url=https://thehustle.co/payal-kadakia-classpass |access-date=11 November 2024 |work=The Hustle}}{{cite news |last=Carson |first=Biz |date=October 20, 2015 |title=How this world-class dancer went from failing twice to a $30 dollar fitness empire |url=https://www.businessinsider.com/payal-kadakia-went-from-failing-twice-to-a-400-million-fitness-empire-2015-9 |work=Business Insider}}{{cite news | last=Arata | first=Emily | title=I Want Your Job: Payal Kadakia, Cofounder And CEO Of ClassPass | url=https://www.elitedaily.com/women/want-your-job-payal-kadakia-classpass/1320363 | work=Elite Daily | date=December 15, 2015}} In 2012, the company launched Passport, allowing users to try one fitness class at a new studio.{{Cite web |last=Lagorio-Chafkin |first=Christine |date=5 July 2019 |title=ClassPass Was a Beautiful Website and a Cool Company--With No Users or Investors. Here's How the Founder Turned It Around |url=https://www.inc.com/christine-lagorio/classpass-payal-kadakia-fitness-founders-project.html#:~:text=And%20then%20we%20launched%20ClassPass,%2499%20subscription%20to%20fitness%20classes. |website=Inc.}} The company expanded its product to a subscription.{{Cite web |title=Payal Kadakia: How to price your product to scale |url=https://mastersofscale.com/payal-kadakia-how-to-price-your-product-to-scale/ |work=Masters of Scale}} The company brought on Mary Biggins to help build the new company, and ClassPass was developed in June 2013.{{Cite web |last=Crook |first=Jordan |date=2013-09-18 |title=Classtivity Pivots To Subscription Model So You Actually Work Out |url=https://techcrunch.com/2013/09/18/classtivity-pivots-to-subscription-model-so-you-actually-work-out/ |access-date=2024-11-11 |website=TechCrunch |language=en-US}}{{Cite web |date=2020-03-14 |title=The incredible rise of Class Pass in 2013 by Payal Kadakia |url=https://themilsource.com/2020/03/14/the-rise-of-classpass/ |access-date=2024-11-11 |website=TheMilSource (TMS) |language=en}} In January 2014, Classtivity was rebranded as ClassPass.
Sanghavi left in January 2014.{{cite news | last=Marikar | first=Sheila | title=How one fitness entrepreneur raised $14 million | url=http://fortune.com/2014/11/03/class-pass/ | work=Fortune | date=November 3, 2014}}{{cite news | url=http://www.fastcompany.com/3041413/body-week/how-classpass-transformed-once-pricey-fitness-classes-into-unlimited-fitness | title=This Company Will Get You Into Unlimited Fitness Classes | first=Anna | last=Maltby | work=Fast Company | date=January 27, 2015}} The same year, ClassPass acquired FitMob.{{Cite web |last1=Crook |first1=Jordan |last2=Buhr |first2=Sarah |date=2015-04-23 |title=ClassPass Acquires Competitor FitMob |url=https://techcrunch.com/2015/04/23/classpass-acquires-competitor-fitmob/ |access-date=2024-10-15 |website=TechCrunch |language=en-US}} An earlier version of the company's product was intended to sell a better registration system to fitness studios but this did not receive much interest.{{cite news |last=Shontell |first=Alyson |date=July 31, 2014 |title=How Getting Mugged And Maced Helped A World-Class Dancer Save Her Struggling Startup |url=http://www.businessinsider.com/how-payal-kadakia-found-success-with-classpass-2014-7 |work=Business Insider}}
In March 2017, Payal Kadakia swapped roles with Fritz Lanman, with Lanman becoming CEO and Kadakia becoming Executive Chairman.{{cite news |url=https://techcrunch.com/2017/03/17/classpass-ceo-fritz-lanman-payal-kadakia/ |title=Fritz Lanman takes CEO role at ClassPass as founder Payal Kadakia steps in as Chairman |last=Crook |first=Jordan |work=TechCrunch |date=March 17, 2017}}{{Cite news |url=https://www.esteelauder.com.au/estee-stories-article-payal-kadakia-classpass-founder-how-i-get-it-done | title=Work It Out | work=The Estée Lauder Companies}} In August 2017, the company announced an expansion to New Orleans, Pittsburgh, San Antonio, Cincinnati, Calgary, Honolulu, Indianapolis, Milwaukee, Riverside, California, and Salt Lake City.{{cite press release | url=https://www.businesswire.com/news/home/20170822005395/en/ClassPass-Announces-Plans-North-America-Expansion-Leading | title=ClassPass Announces Plans for North America Expansion Leading into 2018 | publisher=Business Wire | date=August 22, 2017}}{{cite news | url=https://observer.com/2017/08/classpass-expanding-in-america-to-new-cities/ | title=ClassPass Is Coming Soon to a City Near You | first=Margaret | last=Abrams | work=The New York Observer | date=August 24, 2017}} In March 2018, ClassPass began offering live-streamed fitness classes.{{Cite news | url=https://techcrunch.com/2018/03/14/classpass-live-launches-offering-on-demand-workouts-from-home/ | title=ClassPass Live launches on-demand workouts from home | first=Jordan | last=Crook | work=TechCrunch | date=March 14, 2018}}{{cite news | url=https://www.cnbc.com/video/2018/01/02/classpass-ceo-our-new-product-allows-users-to-live-stream-their-workout.html |title=Live-Streaming Fitness: ClassPass's New Product | last=Sorkin |first=Andrew Ross | authorlink=Andrew Ross Sorkin | work=CNBC | date=January 26, 2018}}{{cite news | url=https://www.theverge.com/2017/12/6/16741818/classpass-live-launch-2018-stream-at-home-exercise | title=ClassPass will let you live stream fitness classes at home for $15 a month | last=Carman | first=Ashley | work=The Verge | date=December 6, 2017}}
In January 2019, ClassPass acquired Guavapass.{{Cite news |last=Crook |first=Jordan |date=January 7, 2019 |title=Fitness marketplace ClassPass acquires competitor GuavaPass |url=https://techcrunch.com/2019/01/06/fitness-marketplace-classpass-acquires-competitor-guavapass/ |work=TechCrunch}} Later that year, in October, Classpass acquired Swedish competitor Fitness Collection.{{Cite web |last=Novac |first=Dragos |title=Fitness Collection was acquired by US-based Classpass. |url=https://nordic9.com/news/fitness-collection-was-acquired-by-us-based-classpass-news6427916582/ |access-date=2024-10-15 |website=Nordic 9 |language=en}} Chilean-based MuvPass and ClickyPass, based in Argentina, were acquired in early 2020.{{Cite web |last=Iino |first=Josefina Domínguez |date=2020-03-02 |title=ClassPass acquires MuvPass and ClickyPass as part of its expansion throughout Latin America |url=https://latamlist.com/classpass-expands-throughout-latin-america-with-acquisition-of-chiles-muvpass/ |access-date=2024-10-22 |website=LatamList |language=en-US}}
ClassPass was acquired by Mindbody Inc in 2021.{{Cite web |last=Mariam Rajesh |first=Ananya |date=14 August 2024 |title=Mindbody ClassPass to go public in 12-18 months, CEO says |url=https://www.reuters.com/markets/deals/mindbody-classpass-go-public-12-18-months-ceo-says-2024-08-14/ |access-date=15 October 2024 |website=Reuters}}
In 2024, the company added food and beverage partners, allowing users to spend credits at participating cafes.{{Cite web |last=Fedeli |first=Kristen |date=2024-03-12 |title=ClassPass Enters Food & Beverage |url=https://insider.fitt.co/classpass-enters-food-beverage/ |access-date=2024-11-26 |website=Fitt Insider |language=en-US}}
Financing
ClassPass received seed funding of $2 million in March 2014, then attracted $12 million in Series A round funding from entrepreneur Fritz Lanman in September 2014. In 2015, it received $40 million of Series B funding from General Catalyst and Thrive Capital.{{cite news | url=https://techcrunch.com/2015/01/15/classpass-is-in-session-with-40-million-in-series-b/ | title=Classpass Is In Session With $40 Million In Series B | first=Jordan | last=Crook | work=TechCrunch | date=January 15, 2015}} The company was valued as over $200 million.{{cite news | url=https://www.wsj.com/articles/BL-VCDB-16606 | title=ClassPass, Valued at More Than $200M, Taps Into Gym Craze | first=Yuliya | last=Chernova | work=The Wall Street Journal | date=March 12, 2015 | url-access=subscription}} Classpass received an additional $30 million of funding in November 2015 led by Google Ventures.{{cite news | url=https://techcrunch.com/2015/11/11/confirmed-classpass-raises-30-million-series-c-from-google-ventures/ | title=Confirmed, ClassPass Raises $30 Million Series C From Google Ventures | first=Jordan | last=Crook | work=TechCrunch | date=11 November 2015}} ClassPass announced a $70 million Series C led by Temasek Holdings in May 2017 that valued the company at $470 million.{{cite news | url=https://techcrunch.com/2017/06/16/classpass-secures-70-million-series-c-led-by-temasek/ | title=ClassPass secures $70 million Series C led by Temasek | first=Jordan | last=Crook | work=TechCrunch | date=June 16, 2017}}{{cite news | url=https://www.wsj.com/articles/classpass-taps-70-million-in-down-round-1497639263 | title=ClassPass Taps $70 Million in 'Down' Round | first=Yuliya | last=Chernova | work=The Wall Street Journal | date=June 16, 2017 | url-access=subscription}} In July 2018, it raised US$85M in financing led by Temasek to expand into Asia.{{cite news | url=https://www.fastcompany.com/90209009/classpass-just-raised-85-million-celebrates-with-new-audio-fitness-app | title=ClassPass just raised $85 million, celebrates with new "audio fitness" app | first=RINA | last=RAPHAEL | work=Fast Company | date=July 31, 2018}} In January 2020, it raised $285 million in funding at a $1 billion valuation.{{cite news |url=https://www.cnn.com/2020/01/08/tech/classpass-valuation-unicorn/index.html | title=Fitness startup ClassPass is now a unicorn | first=Sara Ashley | last=O'Brien | work=CNN | date=January 8, 2020}} In October 2021, the company was acquired by Mindbody Inc.{{Cite news | url=https://www.cnbc.com/2021/10/14/mindbody-buys-workout-sign-up-platform-classpass-in-all-stock-deal.html | title=Mindbody acquires workout subscription platform ClassPass as fitness industry rebounds | first=Lauren | last=Thomas | work=CNBC | date=October 14, 2021}}
Criticism
ClassPass has been criticized for undercutting the business model of the health clubs that it relies on, with a 2015 article in The New York Times describing it as a "middleman" between consumers and health clubs, and arguing that a "power imbalance" exists between the health clubs' owners and ClassPass which mirrors the relationship with other digital intermediary services such as Amazon.com and Uber.{{cite news | url=https://www.nytimes.com/2015/03/05/magazine/classpass-and-the-joy-and-guilt-of-the-digital-middleman-economy.html | title=ClassPass and the Joy and Guilt of the Digital Middleman Economy | first=Jenna | last=Wortham | work=The New York Times Magazine | date=March 9, 2015 | url-access=limited}} The service has accounted for lower margins at some gyms where owners limit the number of members "to prevent being cannibalized".{{cite news |url=https://www.theglobeandmail.com/business/small-business/managing/article-fitness-subscription-service-classpass-brings-new-business-to-studios/ |title=Fitness subscription service ClassPass brings new business to studios, but at what cost? | first=BRENDA | last=BOUW | work=The Globe and Mail | date=March 24, 2019}}
See also
References
{{Reflist}}