Data is the new Fitness

15 de July de 2019 Off By morse

In the last two weeks alone, the fitness startup Peloton has been valued in US$ 8 billion, after it announced its IPO, and the Brazilian Gympass achieved the status of unicornwhen it received a US$ 300-million investment from Softbank. We decided to look into these billions. At first, we thought it was a matter of experience – after all, both companies bring flexibility and mobility to users (a big demand from the segment, to be honest). We decided to further dive into it, as the road to hell is paved with great experiences. And the result tells us a story that we already knew: It is data that changes the game, indeed.

Forward, march

The North American Peloton started operations in 2014 with one goal: To upgrade the old-fashioned stationary bicycles with technology. With a touchpad and connected to the web, the bikes by the startup offered users the possibility of attending classes at home. The idea was so well-accepted that, today, the company accounts for 7.3% of the exercise equipment market in the United States.  In the beginning, they were referred to as the “Apple of fitness,” as they put “hardware” together with “software” and services. Over time, however, the nicknames kept changing – to “Netflix of Fitness” and, finally, to the “Amazon of workouts”, a name that, we should say, pleased the company’s CEO, John Foley, a lot.  

So what?

Peloton’s users (or should I say supporters?) not only buy the brand’s equipment, but also pay a monthly fee to have access to highly personalized classes. After all, Foley’s startup analyzes usage data, as well as the weight of those using their machines, to understandhow well the “classes” are working for them. Even the time of the day that people workout is analyzed, so that the o streaming can be done as good as possible. A quick stop to remind that there is a Brazilian company, called Movement, that started to do the same – they collect data from their exercise machines. 

Pass it on

Back to Brazil: Gympass was created in 2012 with the proposal of joining gyms, companies, and employees. By subscribing the company’s plan, a user can use any gym in the region. The evolution to Mobile was natural – all in all, what gives more flexibility than a smartphone?  To have a notion, 80% of end users had never had a gym plan before adhering to Gympass. In 2016, the company arrived in international markets, and today, it makes great strides in their growth in the United States. Needn’t to say that, for a long time, it was known as the “Netflix of gyms” (can we notice a pattern here?!).

Secret formula 

Much of Gympass’s revenue comes from the corporate market. This is because, well, from user data intelligence, the startup can cross gym attendance information with healthcare plan usage information to indicate how well the employees’ health is. The company offers analytics for the HR departments to measure, in real time, the employees’ healthful habits. For partner gyms, the data help personalized the audience.

Para finish…

RunkeeperCalm, Strava, Nike… We could write many, many paragraphs just giving examples of fitness companies that found out, in data, the gold mine to transform their services into something better. But, you know, we are in the middle of a holiday, we do not want to take more of your time. So, we will just say that people responded, so did the market. The message is loud and clear, isn’t it?