Gympass's CASE STUDY

In the heart of London lies a company that's redefining workplace wellness and employee engagement: Gympass. Founded in 2012, Gympass provides a global fitness platform that seamlessly connects employees with an extensive array of gyms, fitness studios, and wellness applications through a single membership. With an impressive network of over 50,000 participating facilities around the world, Gympass is more than just a fitness provider—it’s a catalyst for corporate wellbeing.
We decided to dive deep into Gympass's strategy, explore what makes it exceptional, and understand its unique position in the health and consumer services sector.

A Unique Proposition in the Fitness Industry

Gympass has carved out a distinctive niche within the crowded fitness market by addressing a massive challenge: employee inactivity. According to a study published by the World Health Organization, physical inactivity has been linked to a variety of health issues and costs the global economy $67.5 billion annually in healthcare expenditures and productivity losses (WHO, 2016). Gympass's mission is to make fitness accessible and affordable, ultimately improving employee health and productivity.
What sets Gympass apart is its B2B2C business model. Companies partner with Gympass to offer this unique benefit to their employees. In turn, employees gain access to the Gympass network at a reduced rate. This strategy not only promotes gym attendance but also aligns organizational interests with employee well-being.

The Power of a Network

The breadth and depth of Gympass's network cannot be overstated. It partners with over 50,000 gyms and fitness studios, offering a wide variety of activities from yoga and martial arts to high-intensity interval training. Gympass is akin to the “Netflix of gyms”—users have an extensive range of options at their fingertips. This emphasis on variety and flexibility is a cornerstone of its value proposition.
We have seen similar models succeed in other industries. Netflix revolutionized home entertainment not merely by providing content but by offering a wide range of options, thereby maximizing user engagement. Gympass applies the same principle to fitness, recognizing that a one-size-fits-all approach doesn’t address the diverse needs of employees.

Delivering Value to All Stakeholders

Gympass's business model ensures a “win-win-win” scenario for all parties involved. The company profits from the fees paid by corporate partners, as well as a portion of the reduced membership fees from employees. Fitness facilities gain a larger customer base and a steady stream of revenue as they receive payments based on Gympass member visits.
This model helps maintain a continuous flow of income, encouraging fitness centers to join the Gympass network. For companies, reducing healthcare costs and absenteeism through a fitter workforce is an appealing proposition. A study from RAND Corporation estimates that workplace wellness programs can reduce medical costs by approximately $3.27 for every dollar spent on wellness initiatives (Baicker, Cutler & Song, 2010).

Integrating Digital Innovation

Digital maturity is another pillar that fortifies Gympass’s success. Recognized as a "Digirati" company, Gympass leverages advanced digital tools to enhance user experience, streamline operations, and scale its offerings. The mobile app, a vital channel for Gympass, simplifies the process of finding and booking a class or facility. In an age where mobile usage dominates, having a seamless and accessible app is crucial.
The integration of wellness apps further diversifies the value Gympass provides. Features like nutrition sessions and on-site wellness consultations create a holistic wellness program that extends beyond physical fitness. This attention to comprehensive well-being addresses both the functional and emotional needs of users, fostering motivation, and a sense of belonging.

Adapting Through Partnerships and Innovation

Partnerships play a key role in Gympass's strategy. Collaborating with fitness networks, corporate HR departments, and wellness practitioners, Gympass strengthens its service offerings and expands its reach. Notably, sponsorship by WeWork lends an added layer of credibility and resource sharing.
Moreover, Gympass has attracted significant investment from heavyweights like Oak HC/FT, General Atlantic, and Atomico. This financial backing has enabled Gympass to innovate continuously. According to an article in TechCrunch, Gympass secured a $220 million investment led by SoftBank in 2019, further solidifying its position in the market (TechCrunch, 2019).

Conclusion: A Game-Changer in Corporate Wellness

Gympass has managed to distinguish itself through a unique combination of broad network access, a successful B2B2C model, digital innovation, and strong partnerships. Its thorough understanding of customer needs—ranging from functional and emotional to social impact—has given it a competitive edge in the wellness sector.
As workplace wellness continues to grow in importance, Gympass is well-positioned to lead the charge in driving healthier, happier, and more productive workforces worldwide. The company is not merely a fitness provider; it’s a revolutionary force in corporate wellness, transforming lives one membership at a time.