In 2010, an MIT grad takes a trip to San Francisco.
She goes on to build the "Netflix of Fitness."
THREAD: The Incredible Story Behind Building the First Unicorn Startup of the Decade.
She goes on to build the "Netflix of Fitness."
THREAD: The Incredible Story Behind Building the First Unicorn Startup of the Decade.
1/ @PayalKadakia grew up with a love for Indian folk dance.
She danced through her childhood.
Danced through @MIT.
And eventually danced her way to a management consulting job at Bain & Company in NYC.
She danced and danced until her job began cutting into her dance time...
She danced through her childhood.
Danced through @MIT.
And eventually danced her way to a management consulting job at Bain & Company in NYC.
She danced and danced until her job began cutting into her dance time...
2/ In 2008, Payal quit her demanding job at Bain and joined @warnermusic.
There, she had more free time.
In 2009, she started her own dance troupe: The Sa Dance Company.
She wasn't making money on the venture, but
One trip to San Francisco would change everything...
There, she had more free time.
In 2009, she started her own dance troupe: The Sa Dance Company.
She wasn't making money on the venture, but
One trip to San Francisco would change everything...
3/ In 2010, Payal flew to San Francisco for her friend's birthday.
There, she met a ton of entrepreneurs building their ideas and dreams.
She wanted to do the same...
Payal headed back to NYC
And gave herself 2 weeks to come up with a business idea...
There, she met a ton of entrepreneurs building their ideas and dreams.
She wanted to do the same...
Payal headed back to NYC
And gave herself 2 weeks to come up with a business idea...
4/ Two days later, the idea came to her while booking a ballet class online.
She spent 2+ hours looking for a class, which caused her to miss all the class times!
Frustrated, she thought to herself:
"Why isn't this easier?!"
She spent 2+ hours looking for a class, which caused her to miss all the class times!
Frustrated, she thought to herself:
"Why isn't this easier?!"
5/ Just like that, "Dabble" was born.
It would be a centralized location of fitness classes.
That way, people could spend more time TAKING classes, and less time LOOKING for them.
Payal wrote a letter of resignation to quit her job at Warner...
It would be a centralized location of fitness classes.
That way, people could spend more time TAKING classes, and less time LOOKING for them.
Payal wrote a letter of resignation to quit her job at Warner...
6/ The day she quit, the Vice-Chairman called her into his office.
Payal told him about her idea.
He loved it so much he wrote her a $10,000 check
And promised to connect her with David Tisch, the cofounder of @Techstars NYC.
Now it was time to build...
Payal told him about her idea.
He loved it so much he wrote her a $10,000 check
And promised to connect her with David Tisch, the cofounder of @Techstars NYC.
Now it was time to build...
7/ Payal's high school friend, @SanjivSanghavi, joined her as a cofounder.
And in 2011, they joined TechStars.
They built a booking tool with over 1,000,000 classes
And changed the name from Dabble to Classtivity.
They were confident Classtivity would be a great success...
And in 2011, they joined TechStars.
They built a booking tool with over 1,000,000 classes
And changed the name from Dabble to Classtivity.
They were confident Classtivity would be a great success...
8/ In June 2012, they launched Classtivity.
One day went by...no bookings.
Five days went by...still no bookings.
The team was crushed.
Nobody booked a class until 10 days after launch!
They spent over $500,000, and NOBODY was using their product...
One day went by...no bookings.
Five days went by...still no bookings.
The team was crushed.
Nobody booked a class until 10 days after launch!
They spent over $500,000, and NOBODY was using their product...
9/The Classtivity team brainstormed a solution:
1) They had partnerships with many studios in NYC.
2) They had insight into FREE class times.
3) Customers inherently love FREE!
So, what if they bundled those FREE classes into a product?
1) They had partnerships with many studios in NYC.
2) They had insight into FREE class times.
3) Customers inherently love FREE!
So, what if they bundled those FREE classes into a product?
10/ In 2013, they launched the Classtivity Passport.
For $50, customers could try up to 10 fitness classes in 30 days.
Customers loved it so much they began CHEATING the system
Forging Passports by buying them with different email addresses!
For $50, customers could try up to 10 fitness classes in 30 days.
Customers loved it so much they began CHEATING the system
Forging Passports by buying them with different email addresses!
11/ The team was onto something.
If customers enjoyed the one-month flexibility of Passport, would they also enjoy a monthly subscription?
They ran a survey:
"If you could use Passport month to month, would you do it?"
95% of customers said YES!
If customers enjoyed the one-month flexibility of Passport, would they also enjoy a monthly subscription?
They ran a survey:
"If you could use Passport month to month, would you do it?"
95% of customers said YES!
12/ In June of 2013, they launched the Classtivity ClassPass:
A subscription product that changed the company forever.
For $99/month, customers could access 10 classes wherever they wanted to go.
3 months after launch, ClassPass overtook the revenue of Passport...
A subscription product that changed the company forever.
For $99/month, customers could access 10 classes wherever they wanted to go.
3 months after launch, ClassPass overtook the revenue of Passport...
13/ The team re-branded from Classtivity to @classpass
And focused all their energy on growing their new subscription product.
But there was one issue...
Competitors started popping up everywhere.
The ClassPass team needed to move fast if they were going to survive...
And focused all their energy on growing their new subscription product.
But there was one issue...
Competitors started popping up everywhere.
The ClassPass team needed to move fast if they were going to survive...
14/ In May of 2014, ClassPass launched Unlimited Summer.
For $99/month, customers could attend UNLIMITED classes.
Bookings rose to all-time highs!
But the ClassPass team wouldn't take their foot off the pedal.
They set a goal to launch in 20 cities by the end of the year...
For $99/month, customers could attend UNLIMITED classes.
Bookings rose to all-time highs!
But the ClassPass team wouldn't take their foot off the pedal.
They set a goal to launch in 20 cities by the end of the year...
15/ @classpass hired 60 people in one weekend
And were in 20 new markets in less than 3 months!
They were rapidly growing, but bleeding money on their Unlimited Plan...
And were in 20 new markets in less than 3 months!
They were rapidly growing, but bleeding money on their Unlimited Plan...
16/ @classpass ditched the Unlimited Plan in November 2016
Losing 10% of their customers in the process.
They began selling 3-class, 5-class, and 10-class memberships
But customers wanted more flexibility...
Losing 10% of their customers in the process.
They began selling 3-class, 5-class, and 10-class memberships
But customers wanted more flexibility...
17/ In 2018, @classpass introduced a-la-carte booking
Allowing customers to buy as many classes as they want on a monthly basis.
2 years later, ClassPass:
• Had processed 100+ million bookings
• Had partnered with 30+ thousand studios
• Was in 2,500+ cities across the globe
Allowing customers to buy as many classes as they want on a monthly basis.
2 years later, ClassPass:
• Had processed 100+ million bookings
• Had partnered with 30+ thousand studios
• Was in 2,500+ cities across the globe
18/ On January 8th, 2020, ClassPass became the first Unicorn of the decade.
This led to a major all-stock acquisition by Mindbody on October 13th, 2021.
Together, @classpass and @askmindbody are positioned to build the "Netflix of Fitness."
This led to a major all-stock acquisition by Mindbody on October 13th, 2021.
Together, @classpass and @askmindbody are positioned to build the "Netflix of Fitness."
19/ For more on the ClassPass story, check out these resources:
• @fittinsider - insider.fitt.co/issue-no-153-w…
• @reidhoffman - mastersofscale.com/payal-kadakia-…
• @guyraz - npr.org/2020/06/25/883…
• @fittinsider - insider.fitt.co/issue-no-153-w…
• @reidhoffman - mastersofscale.com/payal-kadakia-…
• @guyraz - npr.org/2020/06/25/883…
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3 Key Takeaways From the ClassPass Story:
1) Do things that don't scale
2) Be mission-driven
3) Scale first, then worry about economics
1) Do things that don't scale
2) Be mission-driven
3) Scale first, then worry about economics
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