“The truth is there is a fundamental problem with the Unlimited plan,” writes Kadakia. When ClassPass first launched, it served up unlimited access to fitness classes for $99 per month. It’s since raised that figure twice, up to a height of $190. Now its killing the unlimited tier altogether. The letter acknowledges the company’s subscription pricing under unlimited was unsustainable, which Fast Company reported last month.
Kadakia says she plans to continue expanding ClassPass offerings to include new activities, on-demand video, and potentially social features. There are two questions going forward: Can ClassPass make money on its 5- and 10-class passes (which also rely on customers taking as few classes as possible to turn a profit)? And will consumers continue to find value in the service?RR