London boutiques in revolt over changes to ClassPass
by Jak Phillips | 17 Mar 2016
ClassPass CEO Payal Kadakia founded the company in 2013
A number of high-profile London boutique studios have announced their intention to quit studio subscription service ClassPass over proposed changes to the revenue structure.
The group of studios – understood to include 1Rebel, The Power Yoga Company, Core Collective, Cyclebeat and Ride Republic – have informed ClassPass users that they will not renew their affiliation to the service when their current contracts expire, meaning users will need to join the studios directly if they wish to retain access. Some also said that access for ClassPass users would be reduced in the meantime to a minimal amount.
A message from Ride Republic to users said the move had been prompted by ClassPass’s decision to “reduce prices paid to studios to a level that is not sustainable for our business.”
One well-placed source in the boutique sector described the impasses as a "fairly public game of chicken" between ClassPass and the studios over pricing, with neither side willing to budge.
With nearly 200 London studios on its books, ClassPass offers members unlimited access to studios in its network for £79 per month – although (to protect each site’s business margins and manage footfall) users can only visit the same studio three times a month.
The dispute has been met with dismay on Twitter, with many ClassPass users urging the company to resolve the situation to the benefit of users and studios.
In response to one such tweet, ClassPass wrote: “Our team is working quickly to hopefully find a solution that benefits both our members and our studio partners.”
It is understood that ClassPass is due to meet with 1Rebel management today (17 March) at 4pm in an attempt to resolve their dispute, although it is unclear whether such meetings have been scheduled with other operators.
Health Club Management has contacted 1Rebel and ClassPass for comment.
To read an analysis of the impact third-party platforms such as ClassPass are having on health clubs – from the December 2015 issue of Health Club Management – click here.
London boutique studios ClassPass
A number of high-profile London boutique studios have announced their intention to quit studio subscription service ClassPass over proposed changes to the revenue structure. The group of studios – understood to include 1Rebel, The Power Yoga Company, Core Collective, Cyclebeat and Ride Republic – have informed ClassPass users that they will not renew their affiliation to the service when their current contracts expire, meaning users will need to join the
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