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Home News

ClassPass’s bubble has burst!

April 27, 2016
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Screen Shot 2016-04-27 at 9.23.11 PM

This just in! Class Pass has decided to raise their rates in the NYC Metro Area to $190, a 52% spike!  So far in 1 year we’ve seen it go from $99 > $125 > $190.

In an interview with FORBES reporter Chloe Sorvino, CEO and cofounder Payal Kadakia suggested that user enthusiasm for the service outpaced the two year old company’s business model.

“We’ve just seen engagement go up. And it’s surpassed our expectations of what we thought usage would average out to be,” she said. “And so, for us, it’s compelling, but at the same time we need to make sure that we are building a sustainable business model around it.”

“We didn’t want to just increase the price of unlimited because we wanted to make sure we were being accessible and affordable to the rest of the market,” she added.

So did Payal Kadaki just not plan her company correctly? Or was her plan all along to follow startup trends and try to get users hooked before raising the prices wishing they wouldn’t notice?

FYI in Los Angeles it’s still only $119.

Screen Shot 2016-04-27 at 9.23.25 PM

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