In this blog, we will discuss “how does gympass make money”, alongside, will also discuss how the company came into being as well as the operations and the services it offers to its customers. We will also discuss the man behind Gympass, If you are interested in the topic then keep on reading.

how does gympass make money

Gympass makes money by charging businesses a charge to use their platform, and this is how they make money. This enables business employees to take advantage of discounted rates at any gym or wellness center. In contrast, Gympass makes money by charging monthly membership fees to its customers.

What is Gympass

Gympass is a global platform for wellness benefits that is accessible from anywhere on the globe. Business owners may encourage their employees to be physically active by offering them unfettered access to the world’s largest network of wellness providers, which includes gyms, yoga studios, boot camp sessions, fitness classes, virtual therapy, and other services, among other things.

Gympass is more than just another health and wellness program for employers. It is a global fitness pass that enables customers to make physical and mental well-being a daily practice.

Gympass earns the vast majority of its revenue through the sale of prepaid memberships as part of corporate health insurance programs. These memberships include training facilities and courses, providing clients with a convenient, all-inclusive fitness plan that is simple to follow.

Gympass was co-founded by a student of Harvard Business School named César Carvalho in the year 2012. It has been in the German market since 2016 and has its corporate headquarters in New York City, United States. The company currently has 1,300 employees in over 30 branches worldwide.

The business model of Gympass

The business model of gympass works in a three-way marketplace that collaborated with businesses and their employees with fitness providers.

Customers of Gympass have access to more than 50,000 fitness facilities and have access to over 150,000 online personal trainer sessions per month.

The fitness companies in return receive a payout amount per individual check-in. Their target market is people who do not move a lot.

During Covid-19, Gympass was offering live online classes and additionally they teamed up with partner apps like Calm to promote mental well-being.

Company overview

Name of the companyGympass
Founder of GympassCésar Carvalho
Year of FoundationInception (2012)Implementation (2016)
Number of Employees1,300
Link to the official websiteGympass.com
Areas CoveredEurope, the USA, and Latin America
HeadquartersNew York City, United States

Founder of Gympass

Former McKinsey consultant Cesar Carvalho launched Gympass as a work-life balance solution in response to his personal experiences as someone who was looking for a method to reconcile work and leisure.

As part of his professional growth, he enrolled in Harvard University’s Graduate School of Education. FitnessPass was created as a consequence of his boundless creativity and a burning desire to continue a high-quality training regimen despite his demanding work schedule. He founded the company in 2010.

GymPass was launched in 2009 as a Direct to Consumer business type with the purpose of providing customers with daily gym tickets on a subscription basis. However, nine months after its founding, the company decided to enter the business-to-business (B2B) sector. When it came to reaching 500 members, PwC was the first corporate member to accomplish it and the first to do so effectively.

On the GymPass floor, this happened totally by coincidence, as you can see. It provided them with a whole new marketing route to pursue. Corporations have seen significant growth in their sales of gym memberships, which has resulted in a 220 million dollars Series E fundraising round valued at $2.2 billion in 2021 and a $2.2 billion valuation in 2022.

It was on the promise of development and expansion that the team obtained funds, which they have already achieved (although expanding from nothing to $2.2 billion is quite an achievement!).

A strong advocate of the transformational power of technology, Carvalho seeks to simplify the process of engaging in a range of health and wellness activities while also providing them with the instruments they need to stay engaged.

At the moment, GymPass is available in a total of major cities and regions around the world, including Mexico City; New York; Los Angeles; San Francisco; Chicago; Atlanta; Miami; Nashville; St. Louis; and Houston. It is also available in Europe and, more recently, Latin America as well as other countries in the United States. GymPass is a fitness membership service that gives customers access to gyms in major cities and other places all over the globe as part of their subscription.

How does Gympass make money

Gympass is a fitness and wellness setup for businesses, collaborates with companies to provide a flat charge for a program and app that enables workers to choose from a variety of health-related options.

This service provides consumers with unrestricted access to a worldwide web of wellness providers, studios, directories, and health applications such as Calm for up to 70% less than the cost of a retail membership.

Physical health, mental health, food, and sleep are the four areas in which the products are grouped. Customers may purchase memberships in three distinct pricing tiers, each of which provides them access to a variety of studios, health clubs, and salons featured on the company’s mobile and web apps.

In addition to providing access to 800 fitness facilities, the starting membership is just $9.99 per month, while the second tier membership is $79.99 per month and also gives access to almost 800 fitness facilities. The Gold Membership, which costs $139.99 a month, provides premium benefits to over 7000 institutions.

This method is particularly helpful during periods of business travel since it allows workers to maintain their training routines regardless of whether they are living overseas or traveling for professional purposes.

This access is available 24 times a day, seven days a week, and there are no long-term commitments or cancellation fees, allowing clients the maximum possible degree of flexibility.

This prestigious clientele, which includes some of the world’s most well-known corporations and vertical sectors, accounts for the vast bulk of the company’s income and profit margins.

Operations, Funding & Expansion

Fitness club operator GymPass was a pioneer in the development of proprietary technology for monitoring and managing each member of the Gym network and financial reporting, before expanding to include operational management and financial reporting as well.

Machine learning algorithms, analytics, and artificial intelligence are used by the organization to create data and insights into consumer and company behavior.

When GymPass made important strategic appointments, the firm was able to accelerate its growth and expand into new fitness markets. An experienced leadership and marketing team with a track record of increasing fitness growth for multinational organizations is among those who will be joining the company.

Facts about Gympass

Gympass is a subscription-based health and exercise program.

A large variety of fitness programs are available to Gympass customers who have unfettered access. In order to partner with other gyms, the company has developed a network of 11,700 facilities.

There are several different packages to choose from

Gympass offers a variety of online workout programs. The basic subscription offers online access to 56 gyms and studios. Silver-level membership allows you access to 176 activities. The Gold package includes 256 activities. Platinum membership entitles members to 288 activities, while Diamond membership entitles them to 291.

Gympass offers a variety of health and wellness options for corporate organizations.

Businesses wishing to give their employees a company-sponsored health and wellness benefit might consider Gympass as a viable option. After consulting with HR professionals to determine which packages will be most beneficial to their employees, the staff provides the company with credentials that allow those who have been granted access to log into the program with their accounts and begin creating their health and wellness programs for their respective departments.

Gympass provides a range of holistic health and wellness options.

As a result of the wide range of activities offered, members may design their wellness programs that are tailored to their requirements and interests. NEOU is a comprehensive program that incorporates both physical training and meditation sessions into its structure. The Zen App is intended for those who want a little more assistance in relaxing, meditating, and sleeping soundly at night.

The Gympass plans are affordable

When we discovered how reasonably priced Gympass membership packages are, we were pleasantly impressed. The most basic package, which includes 56 activities, is available for just $9.99 per month.

Since 2012, Gympass has been providing services to its customers.

The year 2012 saw the launch of Gympass. It was originally established in Brazil, but it later transferred to New York, New York, where it currently has its headquarters. Since its beginnings, the organization has grown to include members in 14 other countries throughout the world.

Gympass has partnered with several major corporations.

Gympass has formed partnerships with some of the most well-known companies in the world. Employers that place high importance on their workers and strive to provide them health and wellness benefits fall into this category. Tesco, Activision Blizzard, and Unilever are among the companies that have been named as suspects.

In conclusion, we looked into “how does Gympass make money”, Gympass makes money by charging businesses a charge to use their platform, and this is how they make money. This enables business employees to take advantage of discounted rates at any gym or wellness center. It also makes money by charging monthly membership fees to its customers.

Frequently asked questions (FAQ): how does Gympass make money

How do gyms get paid from Gympass?

Gympass earns money by providing services for which workers must pay a charge to utilize them.

How much do companies pay for Gympass?

Employee membership fees start at $9.99 per month and include unrestricted access to the world’s biggest wellness solution. You administer the benefit using a specialized, user-friendly HR site.

How much is Gympass worth?

Following the Series E round, Gympass is valued at $2.2 billion. Softbank led a $220 million Series E investment round for Gympass.

Is Gympass a good deal?

Unlike ClassPass’ BTC and B2B models, Gympass solely works with businesses, who pay a one-time cost for the platform (an app) that lets their workers pick from a variety of wellness programs.

Is Gympass only for companies?

Unlike ClassPass’ BTC and B2B models, Gympass solely works with businesses, who pay a one-time cost for the platform (an app) that lets their workers pick from a variety of wellness programs.

Which gyms are included in Gympass?

Lifetime, F45, Blink Fitness, SNAP Fitness, Barry’s, SoulCycle, and more gyms are among the 12,000+ available.

References

Team, S. (2020, July 25). How Does Gympass Make Money? Business Model Of Gympass. Retrieved from Social : https://www.soocial.com/how-does-gympass-make-money/#The_Man_Behind_GymPass_Cesar_Carvalho

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