Not only has Class Pass’s bubble start to burst, but it’s looking like Soul-Cycle’s bubble is just about here as well. Soul-Cycle was started a decade ago with an Upper-West Side, NYC location, they have since been fully taken over by Equinox and a few other investors. But earlier this month SoulCycle Founders Elizabeth Cutler and Julie Rice Resigned as co-chief creative officers, but will stay on the company’s board. They plan to pursue new projects.
The brand filed to go public in July, (though they got cold feet before following through) and gym brand Equinox currently owns a 97% stake. When Equinox increased its stake in SoulCycle last spring, the co-founders each received a payout of about $90 million.
Earlier this year they had to raise their prices $1.53 to collect a 4.5% New York City sales tax. Starting Tuesday, February 1, 2016, a $1.53 sales tax will be added to the purchase of a single $34 SoulCycle class in NYC, with all of the tax going directly to New York State.
Additionally if you’ve been inside of any of their ‘newer locations’ you’ll notice certain cost cutting measures starting to take place, the digital locker room locks have been replaced now with analog ones, and apparently charing $34 a class /per person still means you can’t buy an adequate hot water heater for the restrooms.
Since some of us do attend their classes, we will say, those spinning rooms are starting to appear pretty empty, no longer do you need to sign up for classes exactly at noon on Monday, all of their locations have reduced their operating hours, and each location are offering less and less classes a day. Their bubble is upon us.