Using the internet to reach a much larger customer base, tap into unused capacity, and provide all services online has disrupted the industry's old business model business hotels and taxis. Look at Uber and Airbnb, for example. Could the same thing happen to the gym business? Some businesses start up of Asia seems to think so.
![kfit [img]](https://yup.edu.vn/wp-content/uploads/2016/08/kfit-img.jpg)
KFit and GuavaPass both offer monthly subscriptions covering multiple gyms. Members can access a network of gyms and other fitness facilities partnered with these businesses. Customers can choose from a wide range of activities, from weightlifting and treadmills to yoga, rowing, kick-boxing and many others; naturally, they book classes through the website or mobile app.
This model can be considered ideal for people trying to determine an “exercise regimen” that suits them, those who enjoy variety or those who struggle for some reason to commit to one type of exercise. Bringing these resources and spaces together makes great sense in Southeast Asian urban areas, where gyms often cluster in central districts or large shopping centers.
Founded in 2015, GuavaPass is now present in Bangkok, Singapore, Manila, Jakarta, Dubai, Hongkong, Shanghai, Taipei, and Seoul. The service costs USD 63/month in Manila and prides itself on carefully selected, high-quality workout programs. Members can access activities in nine cities, especially appealing to frequent regional travelers. Members may attend unlimited classes, but are limited to three visits per month at each studio.
KFit was founded in 2015 by the founder of Groupon Malaysia. Its service is more affordable (21 USD/month for 10 classes), and customers can book additional classes “à la carte.” Members can access activities in their own city, while a wider range of spa, massage and beauty services will continue to appear. Earlier this year, KFit received another 12 million USD in investment, bringing its total funding to 15.25 million USD.
Both businesses startup all follow the ClassPass model, launched in New York in 2013 and now covering 8,000 locations worldwide.
Partnering with shared-membership models such as KFit, GuavaPass, and ClassPass helps gyms reach new customers and fill classes. Collaboration is more beneficial than competition.
Many ClassPass partners were enthusiastic initially, but some later found no beneficial results. The owner of a Pilates studio in San Francisco told the Business Insider that they stopped working with ClassPass because, although they could reach more customers, they could not convert them into full-time, regular customers.
Moreover, a large customer base is not everything gym businesses seek, and in some cases gyms lack the capacity to accept every new member needing help from a professional trainer.
But Benedict Bernabe, CEO of Beyond Yoga, a yoga studio with several locations in Metro Manila, considers partnering with GuavaPass the right decision so far. They gained more off-peak classes, built brand awareness from 0 and made a profit. “I chose GuavaPass because of its ambitious direction and its equally aspirational selection of studios,” Bernabe said.
Larger gym chains have more spare capacity and ample resources to accommodate customers who may not become regulars. Over the long term, however, smaller, specialized gyms will face challenges in benefiting from this business model.
One thing is absolutely certain, although both startup will become “the future Ubers of the industry business exercise” or not, in Asia this industry still has great potential for growth.
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