Sarah Jacobs
ClassPass CEO Payal Kadakia.
The monthly subscription service for gyms and workout classes is doing away with the plan that helped the company make its name, the company announced in a blog post on Wednesday. CEO Payal Kadakia wrote in the post that the decision "didn't come easily."
"The truth is there is a fundamental problem with the Unlimited plan," Kadaki wrote. "It can't be a long-term membership option because it doesn't align our business with our promise. What kind of business would we be if we wanted our members to work out less to reduce costs? We'd be sabotaging the vision at the very heart of this company."
ClassPass will continue honoring the unlimited plan for current member for another billing cycle, then those members will be migrated to a 10-class plan. Those members will receive 10 free classes every month for the first three months, the company said.
Initially called the "Netflix for workout classes," the unlimited plan helped ClassPass make its name, since it cost $99 for an unlimited number of classes, which can cost upwards for $30 per class.
This story is developing...