clock menu more-arrow no yes

Filed under:

Classpass's Latest Rate Hike Has Pissed Off New Yorkers

New, 1 comment
Courtesy of Classpass

Racked is no longer publishing. Thank you to everyone who read our work over the years. The archives will remain available here; for new stories, head over to Vox.com, where our staff is covering consumer culture for The Goods by Vox. You can also see what we’re up to by signing up here.

Today, Classpass is making serious changes in New York. The fitness startup that lets users attend boutique studios for a fraction of the price previously rolled out a five-class-per month option, and now it's adding another with ten classes per month, in addition to its standard unlimited option. However, that unlimited option now has a new price tag, and people are not happy about it.

The "Base" package of five classes per month still costs $75, and the "Core" package of ten classes per month is $125 for existing members and $135 for new members. But what's drawing ire is how much it'll cost to keep going with the signature unlimited option: $190 for existing members, and $200 for new ones.

To put that in perspective, NYC members are currently paying $125 for unlimited classes — and before that, it was just $99.

"As our community of members has grown, it's become clear that our business must evolve to meet their needs," Classpass's email to members reads. "Studio drop-in rates in the New York City metro area are as high as $35, and in order to build a membership that's best for our customers and for our business, we can no longer sustain a one-size-fits-all Unlimited membership at our current rates."

In this age of auto-payments, Classpass fortunately isn't springing this $65 increase on unlimited users without their permission. They need to manually confirm their decision to stay on the unlimited plan through their accounts, or else they'll be defaulted to the Core package and stay at the same $125 rate.

Regardless, people are pissed — and since it's 2016, Classpassers aren't keeping their opinions to themselves. The #classpass hashtag on Twitter is rich with dedicated fitness users are telling the world how they really feel right now:

The best ones, though, tap into the cultural zeitgeist du jour:

Classpass provided the following statement from CEO Payal Kadia:

"We're encouraged by the engagement on ClassPass and the tremendous growth we've had that shows we are fulfilling our mission of helping people live a more active life, but we have to evolve our business model and adjust prices in order to create long-term sustainability with both our members and the market. We've also realized that a one-size-fits-all membership is not diverse enough to serve all of our members' unique needs, which is why we have decided to roll out new plans.  We wanted an easier entry point for new users who have an appetite for boutique fitness as well as the ability to keep offering an exceptional experience to those who love our unlimited product."

To incentivize memberships during this time of upheaval, new users can take 50% off their first month of the Base package, meaning those in New York would pay only $7.50 per class, as long as they use up all five of them.

Classpass has been a subject of debate in New York outside of pricing, too. It's responsible for helping studios like Pop Physique and Row House arrive or expand in the city, but other businesses have claimed that it's hurt their bottom line, with one going so far as to partially blame the "rapidly growing web based membership program" for its closure.