ClassPass, the platform that charges users a monthly fee to attend fitness classes at a wide variety of local studios, has reportedly turned to corporate wellness as a means of generating new revenue.
Fortune.com reports that increasingly ClassPass is being offered as a part of employee benefits packages. In fact, CEO Fritz Lanman told Fortune that the firm’s corporate business has “quintupled” in just the last six months.
“We believe it’s the first corporate wellness program that aligns incentives between the corporate team, the provider, and the studios,” Lanman said. “We make more money if people work out more.”
After a pilot period that began a year ago, ClassPass has signed on well-known companies such as Etsy, Facebook, Gatorade, Glossier, Google, Morgan Stanley, Southwest Airlines and Under Armour to its corporate wellness program.
Recent turmoil in the market triggered by a boycott of SoulCycle and Equinox may have helped ClassPass gain a foothold in the corporate market, though Lanman refused to comment on any effects that may have had on his business.
According to Fortune, ClassPass’s corporate business has grown because employees are asking for it. For the most part, the companies signing on with ClassPass are replacing their current fitness offering rather than adding-on an additional benefit. The program is structured in such a way that employers only pay for those employees who actually sign up for the benefit, rather than charging on a per-eligible-employee basis.
Despite the recent surge in corporate business, the company remains focused on the consumer side.
“Consumer is a bigger opportunity because not everyone works for a corporation,” Lanman told Fortune. “But building the best product for consumers makes us more compelling as a corporate player.”
