ClassPass Rolls Out New Pricing Plans in London & New York

NEW YORK, United States — ClassPass is making big changes to its pricing plan in London following controversial adjustments made in New York last week.

Set to hike its monthly subscription fee to £110, ClassPass CEO and cofounder, Payal Kadakia has assured consumers it will continue to build strong partnerships with the best fitness studios in London.

“London has been a burgeoning hub for fitness and amazing workout experiences,” Kadakia told Welltodo. “And we look forward to growing our partners and class offerings there while continuing to introduce even more people to boutique fitness.”

Since launching in London in March 2015, ClassPass has introduced the capital to a new way of fitness. Doubling their studio partners and adding over 150,000 monthly class spots, the subscription service has enjoyed remarkable demand, with London becoming its fastest growing market.

Aimed at consumers who want the option of flexible and varied workouts at an affordable price, the new pricing structure, which sees the unlimited monthly subscription fee increase by £30, has left some consumers wondering if it’s veering away from its core values.

In New York, the fitness booking app has increased its monthly membership fee from $125 to $190, leading commentators to compare the new fees to those of premium gym operator Equinox.

In fact, in less than 12 months, in New York, the business has increased its monthly membership by over 50%, prompting some of its members to take to social media to blast the company.

Responding to the criticism, at the time, Kadakia told Forbes:

“We’ve just seen engagement go up. And it’s surpassed our expectations of what we thought usage would average out to be. And so, for us, it’s compelling, but at the same time we need to make sure that we are building a sustainable business model around it.”

The Introduction of a new two-tiered membership system, giving consumers in every market the option to take five or ten classes at a lower rate, is a way for the company to make sure it’s still offering an accessible and affordable service to the rest of the market, Kadakia explained.

Arguing that the new changes will encourage more people to try out studios, Kadakia said: “We’ve been on a mission to get people to really work out and our number one thing has always been how can we get people to say yes to going to these new places.”

ClassPass, who say 70% of their members were not regular boutique fitness users before joining the service, suggest that the business is helping to grow the pie for the industry as a whole. However, some studio owners disagree.

Last month one London studio owner, who asked to remain anonymous, told Welltodo:

“ClassPass is devaluing boutique fitness with their ‘one size fits all’ approach and their new proposed contracts simply aren’t sustainable for studios.”

And while consumers get to grips with the new pricing structures, rival businesses in both the U.K and the U.S are taking the opportunity to snatch market share.

David Barton’s new gym, TMPL, located in New York has been offering free classes to consumers who show their ClassPass app, while a host of new entrants into the market such as SportSetter in the UK and FitReserve in the U.S are positioning themselves as the ‘new and improved’ ClassPass.

However, ClassPass isn’t letting the latest furor slow down progress. The business is doubling down on investment in technology and hopes to be able to provide users with an even more personalised and curated experience in the future, as it remains committed to helping grow and innovate the fitness industry.