ClassPass is a subscription service that lets users book and access a variety of fitness classes and boutique gyms under a single ClassPass membership so they can access a wider variety of exercises. Classpass' users has booked over 50 million sessions since they launched in 2012.
ClassPass struggled to with profitability in their early days, but now operate at an average 20 percent margin on each user. They were forced to raise prices and bundle subscriptions, which cost them some users but ended up with a more profitable user base.
Fitness is a big space, but it's competitive and there is plenty of competition in the subscription-for-classes space. ClassPass may eventually expand its subscription bundling of ‘experiences’ into verticals beyond fitness classes, which would increase their addressable market even more.
Steph
Company Specialist at Welcome to the Jungle