ClassPass customers are sweating over its 60 percent price hike

ClassPass sent an email this morning that raised its members heart rates faster than the most intense CrossFit session: It’s raising its prices by a lot.

Customers of its monthly unlimited package in New York will soon have to pay $200, a whopping $75 hike over the current $125. That’s even more of staggering of an increase when you consider in 2013, when the company launched, the same package cost just $99.

ClassPass is a startup that lets people in more than 30 cities around the world take workout classes without having a membership. If used cleverly, it can be a good deal for those who don’t want to commit to a gym. However, some members have complained about having their spots cancelled at the last minute, and non-members complain that gyms have gotten overcrowded because of ClassPass’ popularity.

That could change if the price hike is applied across the board and ClassPass ceases to be decent deal. Customers, unsurprisingly angry about the news, have been giving their fingers a workout on Twitter:

ClassPass explained in a statement that the price was hiked to “create long-term sustainability” with gyms and members. The startup has been valued as a $400 million company, raking in $60 million in revenue last year. But the company is still private, and it’s unclear if it’s still making money at a pace to please its investors. 

The hike is giving its rivals an opening to steal some of its customers, as seen here in this retweet from budget gym Blink Fitness:

Who would’ve thought that an Equinox membership would someday look like a bargain.

https://digiday.com/?p=174884

More in Marketing

At the Las Vegas Grand Prix, Mastercard joins a pack of consumer brands flocking to Formula One

For marketers looking to align their brands with F1’s expanded appeal to audiences, the Las Vegas Grand Prix is providing a slip road into the sport.

Why PepsiCo and EA are expanding their partnership into mobile: A Q&A with PepsiCo vp of global sports and entertainment partnerships Adam Warner

The planned, multi-year nature of PepsiCo’s integration into “EA Sports FC” reflects that both PepsiCo and Electronic Arts are playing the long game as they look to step up the presence of ads inside and beyond EA’s portfolio of sports titles.

Key takeaways from Digiday’s 2024 Gaming Advertising Forum

Now that gaming has gone from a buzzword to a regular presence in brands’ media mix, marketers are more closely scrutinizing the value and ROI of their investments in this channel — and the platforms are rising to the challenge. Here are some of the biggest takeaways from this week’s Gaming Advertising Forum.