ClassPass just changed its membership fee AGAIN and people are not happy
Just as the nation faces an imminent, earth-rumbling change in less than a week as history’s worst election cycle finally comes to a close, one super ubiquitous service dropped a fee change that jolted us from our slumber. ClassPass just announced it was dropping its unlimited plan, and rolling out only two membership options: a five-class plan called Base that costs $75 in New York, or a ten-class plan that costs $135 in New York, called Core. (Sorry, but ten classes a month is only two to three classes a week – not enough!)
According to an open letter by ClassPass CEO Payal Kadakia, the Unlimited plan was too costly for the company to continue.
Kadakia explained that the unlimited plan was originally intended as a limited promotion for new users but was such an enormous success that the company kept it running far beyond its initial summer-long term.
“I was so taken aback by the promotion’s success I focused on nurturing that spark assuming we’d figure out the business model as the company continued to scale,” Kadakia wrote in the surprisingly candid email in which he details the company’s struggles.
The transparency of the fee hikes may have been a smart move, and the reasoning behind it certainly sound (an unlimited plan that the company has to pay for is in no way sustainable).