An Open Letter to Our Community From Our CEO

Earlier today, we announced that our Unlimited plan will be discontinued. This decision didn’t come easily. That’s why I want to share a little history on how we got here, choices we made along the way and what we’re doing to deliver on our promise to make the world a more active place.

Looking Back

When ClassPass first started, we offered 10 classes for $99. It was an exciting time and we were growing fast. To introduce as many people to ClassPass as we could, we tried an “Unlimited summer” promotion in May 2014, hoping it would motivate new members to give us a try, discover boutique fitness and perhaps fall in love with ClassPass. It worked.

The promotion was a spark – it didn’t just help launch ClassPass, it helped ignite something truly special in our community. I was so taken aback by the promotion’s success I focused on nurturing that spark assuming we’d figure out the business model as the company continued to scale.

Many of you began to work out every other day – some of you even every single day! I applauded you for that. I applauded your drive, your desire to discover, your commitment to self. You were realizing the dream I always had for ClassPass, which I loved. Yet, we realized the impact this had on our business was unsustainable.

For every class taken, we paid our studio partners. The more classes that were taken, the more we paid. As you can imagine, our business costs increased rapidly. So we raised our plan prices in an effort to compensate – but we tried not to raise them too much. After all, we wanted to remain as accessible as possible. But in some cities, we even had to raise our prices twice in one year, which was awful for our members and painful for my team. We simply couldn’t make the plan work for our business.

The truth is there is a fundamental problem with the Unlimited plan. It can’t be a long-term membership option because it doesn’t align our business with our promise. What kind of business would we be if we wanted our members to work out less to reduce costs? We’d be sabotaging the vision at the very heart of this company.

Moving Forward

I wanted to make the world a more active and inspired place, and if Unlimited didn’t support that vision while supporting our business, what did? ClassPass needed membership options that inspired people to take class, that were flexible enough to work for everyone and that were priced sustainably. After much research and testing, we introduced Base, a 5-class plan, and Core, a 10-class plan, to do just that. In turn, we introduced a whole new community to studio fitness.

We didn’t stop there. Many of you wanted more classes than your plan offered, so we introduced the option to buy  add-on packs of classes when you needed them, easily, affordably and directly from the app, and we saw instant traction.

I began to envision each one of you having a customizable and flexible ClassPass membership best suited to your monthly routine. Seeing that you could work out exactly how you wanted to was the clarity I needed to say goodbye to our Unlimited plan.

Journeying Onward

In ClassPass’s early days, we celebrated each and every member who joined. I knew so many of you by name! For that reason, I’m truly sorry if I’ve let any of you down.

You should know that despite this news, I am confident in where ClassPass is headed, as its founder and a user myself. In the coming months, we have our sights set on new features and  test rollouts that include on demand video, “out of studio” experiences like group runs and social features that will enhance your membership. These new areas create more possibilities for all of you to lead inspired lives, no matter where you are or what you’re looking for.

Finally – thank you. Thank you for helping to make ClassPass what it has become and for your patience and support as we take this next step. I’m thankful for every member, every partner and every employee in believing that together, we can make the world a more active place.

In my eyes, this is a new beginning for ClassPass, and I can’t wait to see where this journey takes us.

Payal

Founder & CEO, ClassPass

Payal Kadakia is the Founder & Executive Chairman of ClassPass and the artistic director of The Sa Dance Company. She’s been a ‘dancetrepreneur’ since the age of 3 and has been dancing for more than 25 years.