ClassPass sacrifices 10% of customers in pursuit of healthier margins

28 September 2016 - 8:17am

ClassPass, the subscription service for fitness classes, became a household name because of one simple innovation.

The business model. Combining the breadth of a marketplace with a subscription pricing structure sparked a handful of similar startup launches (like Vive, which does the same thing with hair blowouts). But more importantly, it was the turning point for the company, putting it on course toward a $60 million annual revenue run rate for 2015.

But this year, the company hiked its prices, moving customers from a $100 monthly payment to a $180 monthly payment, at its highest, marking the first wave of doubt over this new-found business model.

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