{"id":44383,"date":"2023-10-20T15:35:35","date_gmt":"2023-10-20T15:35:35","guid":{"rendered":"http:\/\/startupsmart.test\/2023\/10\/20\/workout-wars-aussie-fitness-startups-partner-to-take-on-us-giant-startupsmart\/"},"modified":"2023-10-20T15:35:35","modified_gmt":"2023-10-20T15:35:35","slug":"workout-wars-aussie-fitness-startups-partner-to-take-on-us-giant-startupsmart","status":"publish","type":"post","link":"https:\/\/www.startupsmart.com.au\/uncategorized\/workout-wars-aussie-fitness-startups-partner-to-take-on-us-giant-startupsmart\/","title":{"rendered":"Workout wars: Aussie fitness startups partner to take on US giant – StartupSmart"},"content":{"rendered":"
Australian startups are bracing for the imminent launch of large US subscription fitness service ClassPass, with some saying there is only room for a handful of local competitors and the smaller ones will be squeezed out.<\/p>\n
<\/p>\n
The prominent US startup allows users to sign up for classes at a range of venues instead of being locked into a single gym contract, and is expected to launch in Australia within a month<\/a>.<\/p>\n <\/p>\n It is currently advertising for a regional general manager to head up operations in Australia.<\/p>\n <\/p>\n ClassPass\u2019s success in the US, where it has raised $US54 million and is on track to reach $US60 million revenue, led to many copycat startups trying to offer the same service in Australia.<\/p>\n <\/p>\n Teaming up to stay alive<\/b><\/p>\n <\/p>\n One of the biggest local rivals to ClassPass is Malaysian-based KFit, which has just swallowed two smaller startups in the same market, Classhopper and SweatPass in an effort to gain size before the US giant sets up shop.<\/p>\n <\/p>\n Hoffman, who founded Classhopper and has now joined KFit, says it\u2019s undoubtedly going to be difficult for the Aussie startups.<\/p>\n <\/p>\n \u201cIt\u2019s very much going to be a case of the big fish being able to drive the market, and the smaller guys will at some point fade out,\u201d Hoffman says. \u201cIt\u2019s about survival in the market.\u201d<\/p>\n <\/p>\n The recent merger was a way to ensure this survival, she says.<\/p>\n <\/p>\n \u201cWe were doing really well and getting a lot of traction, but the local competition was absolutely rife,\u201d Hoffman says. \u201cWe recognised there was probably only room in the market for two or three major competitors.\u201d<\/p>\n <\/p>\n \u201cAt the time there were ten or so smaller startups trying to do the same thing. It was clear to me that they were the guys to partner with.\u201d<\/p>\n <\/p>\n \u201cIt\u2019s a way of streamlining operations,\u201d she says. \u201cIt will definitely be tough for the smaller startups in the same field. There\u2019s a lot to be learned from the bigger players, and the smaller startups can leverage some of the industry learnings.\u201d<\/p>\n <\/p>\n KFit has enjoyed rapid growth since launching in April, Error! Hyperlink reference not valid.<\/b> and expanding to ten cities in seven countries across the Asia-Pacific region.<\/p>\n <\/p>\n It now has over 600 partner fitness studios in Melbourne, Sydney, Perth and Auckland.<\/p>\n <\/p>\n In a further consolidation of the sector, fitness subscription business BodyPass has acquired Melbourne-based competitor Hello Flexi.<\/p>\n <\/p>\n A BodyPass spokesperson says having the local knowledge is very important.<\/p>\n <\/p>\n \u201cWe\u2019ve taken what they\u2019ve done and tweaked it for Australian purposes,\u201d the spokesperson says. \u201cWe\u2019re owned and run in Australia, and the founders are industry veterans.\u201d<\/p>\n <\/p>\n \u201cIt\u2019s all about the studios, and we\u2019ve got the studios. Knowing the studios, being there for the studios and having those one-on-one relationships are why we\u2019re here.\u201d<\/p>\n <\/p>\n Going it alone<\/b><\/p>\n <\/p>\n While these startups are partnering with their competitors to ensure survival, others are going it alone.<\/p>\n <\/p>\n