1Rebel and Core Collective settle ClassPass dispute
London-based boutique fitness studios 1Rebel and Core Collective have announced they will continue to work with studio subscription service ClassPass following a tense stand-off over proposed pricing changes.
The pair were among a group of London boutique studios – which also included The Power Yoga Company, Cyclebeat and Ride Republic – who last month announced their intention to quit ClassPass over plans to reduce the amount of revenue paid to studios.
However, it seems meetings 1Rebel and Core Collective had with ClassPass head of partnerships Michael Wolf proved productive, with the pair both reversing their decisions to leave.
In an email to ClassPass users, 1Rebel said: “After discussions with ClassPass, we are pleased to announce that we will be reinstating all sessions as of this evening (19 March). ClassPass holders will be entitled to 3 sessions per month as part of their current membership. We are incredibly pleased to announce this and hope it benefits our Rebel Army in the best way possible.”
Meanwhile, Core Collective founder Jason de Savary wrote to ClassPass users: “I am pleased to announce that after being visited twice by the ClassPass head of partnerships from New York this week, we have resolved our differences and can confirm that ClassPass access will increase back its previous levels. We are excited for a strong and on-going relationship with ClassPass moving forward.”
It is not clear where the common ground was found in the meetings. Neither ClassPass nor the studios have commented on the specifics of the resolution, with non-disclosure agreements (NDAs) likely to be in place.
A well-placed industry observer suggested one possible scenario being that the studios were enticed back by the prospect of ClassPass soon offering follow-on purchases in its London app (as was recently launched in 18 US markets). That feature lets a user purchase an additional class at any given studio for £X after they've reached their 3 classes per month there, with ClassPass receiving a cut of the up-sell.
ClassPass’s Wolf, who led the meetings, said: “One of our top priorities is creating sustainability and driving growth within the fitness industry by expanding the depth of our offerings and relationships with our partners.
“We value our London partners and continue to pay out rates that are reflective of the market and fair for to our partners.”
As for the other breakaway studios, Health Club Management understands The Power Yoga Company has already left ClassPass and Ride Republic still intends to follow suit, as will Cyclebeat when its contract expires in the next three months.
One studio chief, who didn't want to be named, said their company also had a meeting with ClassPass to resolve the issues, but added it "still didn't feel the right way to go."
"I don't really think there's much longevity in the model for studios, as the rates are low and the monthly feeds are low," they said.
"It's not really viable for us, but luckily we've never really relied on it anyway. We have had a few conversions from users, but certainly not loads and not as many as we were told we could expect."
1Rebel Core Collective ClassPassLondon boutiques in revolt over changes to ClassPass
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