YouSaid · the spoken record

Payal Kadakia

lines on the record: 106
first: 2020-06-29
most recent: 2020-06-29
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“You know, I even think about my parents, my parents came here with nothing, you know, and literally like for them to know that their daughter built a company like this is like something that I will always feel like is the most rewarding part about this.”
2020-06-29 · How I Built This with Guy Raz · ClassPass: Payal Kadakia · IDENTIFIED FROM THE TRANSCRIPT
“I think it's all about making luck happen to you in the sense of positioning your cards right, right? In the sense of when opportunities sort of present themselves, you either have to decide to go with it or not. And I think this is part of why, to me, ClassPass is so important to people is I kept dancing and I say that because dancing connected me back to like the center of everything I was building. And I really want other people to always have that center in their life. It gave me clarity. And so I think having that clear thinking helped me guide my decisions, helped me listen to myself, helped me sort of put together, wait, like people are saying this and my data is showing this. So this is sort of gray still, but I'm going to go with this decision.”
2020-06-29 · How I Built This with Guy Raz · ClassPass: Payal Kadakia · IDENTIFIED FROM THE TRANSCRIPT
“When you think about it's been 10 years since you launched this thing and we've got a billion dollar valuation in January, which is incredible, and we're obviously in a difficult moment now, and it could last for a while. But when you think about the success and the trajectory of this business, do you... You know, how much do you think this has to do with luck and how much do you think it had to do with just your insane work ethic and skill?”
2020-06-29 · How I Built This with Guy Raz · ClassPass: Payal Kadakia · IDENTIFIED FROM THE TRANSCRIPT
“I think once you've been through the bathroom floor model three or four times, you just start feeling more resilient to it and more confident in the fact that you're going to get through it that, you know, we've been through so many ups and downs as a company. I think there is like close to nothing to like that. I feel like we haven't been through. I mean outside of a global pandemic. you know, I think that's really what it is is we've been through a lot, you know, and I've Fought every single day to come up with a solution, every single time I could. And I think that's the advice I always have is like, as long as there's a dollar in that bank account, you have time to fight and you have money to fight.”
2020-06-29 · How I Built This with Guy Raz · ClassPass: Payal Kadakia · IDENTIFIED FROM THE TRANSCRIPT
“I think there are roughly two types of, there are many types of entrepreneurs, but there are roughly two types of entrepreneurs. Those who really kind of deal with stomach training anxiety, right? Like bathroom floor, feet. I don't know. I think once you”
2020-06-29 · How I Built This with Guy Raz · ClassPass: Payal Kadakia · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, I mean, you know, I think it's been really heartbreaking to see what this has done to a lot of small businesses. And even for we've had to let go of a lot of employees. I know a lot of companies have had to. I think it's hard. I mean, we started this year being a billion dollar company, right? And then have lost a lot of our revenue. So we're going to have to go backwards a little before we go forwards, right? But I think if you have the mindset of we're going to figure it out, we have a team that's unbelievably loyal. We have a mission that doesn't go away even in corona times, right? We're actually trying out different types of classes on there from cooking classes and other and like comedy and things because we don't know what's going to work. So we're back to throwing some things at the wall again. And I think that startup blood is in our DNA. And there's going to be some adjustments that are going to be made. And we'll have to see how customers evolve with it.”
2020-06-29 · How I Built This with Guy Raz · ClassPass: Payal Kadakia · IDENTIFIED FROM THE TRANSCRIPT
“You know, we were lucky that we had it sort of up and ready, and so right when this started within like a week, our entire product changed and our homepage and everything became do these digital workouts. And we've launched this live stream capability where you can use your credits to book these live stream classes to over 50,000 different workouts a week that are going on from our studios. So what we're, you know, I say this in the sense of we're trying what we can. We're doing what we can. studios obviously if you book these classes make money and that's really one of the most important things right now is for people to stay active and our partners to be able to make it through”
2020-06-29 · How I Built This with Guy Raz · ClassPass: Payal Kadakia · IDENTIFIED FROM THE TRANSCRIPT
“So, the number one thing that we're really focused on is making sure our studios make it through this time, right? I mean, they are small businesses, they have huge rents, they, you know, they've many of them have had to let go of their employees and their instructors during this time. But we want to make sure that obviously when this is over and we don't know when, that people can return to these amazing experiences and instructors that they know. What we've really been focused on is how do we send money to them? And we have a partner relief fund that we've launched where customers can donate directly to their favorite studios. And on top of that, something which is obviously very important to us is how do we keep people active at home, right, today in their own spaces. And so a few years ago, we started working actually on a video product”
2020-06-29 · How I Built This with Guy Raz · ClassPass: Payal Kadakia · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, so I mean, we've obviously had to make changes anyway. But yeah, I mean, we're happy we have that money, but that still doesn't mean we can waste it, right? I mean, this is all about survival. Yeah.”
2020-06-29 · How I Built This with Guy Raz · ClassPass: Payal Kadakia · IDENTIFIED FROM THE TRANSCRIPT
“It's a different world. I mean, these are unprecedented times. And I mean, studios in our business were one of the first things to obviously be mandated by the government to shut down. overnight in almost close to i would say 95 of our markets most of our studios closed down”
2020-06-29 · How I Built This with Guy Raz · ClassPass: Payal Kadakia · IDENTIFIED FROM THE TRANSCRIPT
“100% I don't think we're ever at a point as a company where we are saying we know that we're right and that we have the exact perfect way of doing things. What we're always trying to do is make the majority of our studios happy, right? A majority of our customers happy on a given day. And we're improving our models. We're improving the way our business works for all these studios. And it really comes down to prioritizations, but we're always, once again, like our teachers are our product, right? I always say this, it's not, you know, our product is not this technology we built. Our product is this class that someone goes to, right? Offline. It's the experience they have with our instructors in our studios. That is the most important thing for us to protect and make sure that everyone feels like they are getting a good end of the deal.”
2020-06-29 · How I Built This with Guy Raz · ClassPass: Payal Kadakia · IDENTIFIED FROM THE TRANSCRIPT
“You know, $25, $30 is just obviously more efficient when we're selling a product that has a bigger lifetime, right? We're able to put money into Google Analytics or Facebook, you know, and they can't do that.”
2020-06-29 · How I Built This with Guy Raz · ClassPass: Payal Kadakia · IDENTIFIED FROM THE TRANSCRIPT
“And with that being said, I think there are many studios out there who've literally built their entire businesses off of ClassPass, right? Like wouldn't be alive today without launching with us. And on the flip side, I think we also know that there's companies that have had to deal with discounts who didn't want to. And I think for us, we're always trying to improve. We're building our technology, our algorithms, our data to make sure that we're always maximizing revenue. And our studios are making money when we make money, right? So everything is 100% aligned. I do think, you know, studios would love to be able to do some of this themselves. But when you really, I mean, when you think about it, it's not that like I hate saying like it's not that they can't. It's really just that the synergies, right? Of a company like ClassPass being able to do customer acquisition for an entire industry, right? Where a class”
2020-06-29 · How I Built This with Guy Raz · ClassPass: Payal Kadakia · IDENTIFIED FROM THE TRANSCRIPT
“So, you know, we always look at all of our partners, and I think it's important to understand that we're a two sided marketplace, right? We're always trying to balance the two and be this middleman that is making both sides happy.”
2020-06-29 · How I Built This with Guy Raz · ClassPass: Payal Kadakia · IDENTIFIED FROM THE TRANSCRIPT
“I realized in that process is that a title to me doesn't mean anything, it's the work you do. And, you know, it was really important for me to make sure that You know, especially little girls and women know that they can be CEO. Now, the opposite side of that is I would not want to see somebody in a role that didn't feel authentic to them, right? And wasn't letting them be who they wanted to be”
2020-06-29 · How I Built This with Guy Raz · ClassPass: Payal Kadakia · IDENTIFIED FROM THE TRANSCRIPT
“Right, yeah. So, first, I think it's important for people to understand that the role of a founding CEO significantly changes as your company grows, right? So what I was doing when we were five people and even 50 people, it's very different than all of a sudden when you have 200, 300 people. And I started finding that the title of CEO was defining me and boxing me in more than me being able to sort of, you know, have the freedom to continue to do the creativity and the vision and the projects that I knew I really wanted to spend my time on. And I realized, you know what? And I was lucky, I had a great partner in Fritz. Fritz had been working with me at this point for three years. We kind of also started, you know, he started getting more involved and he was kind of in the day-to-day a lot more. And I was working on more like the strategy and the vision of the company. And so it became pretty easy for us to make the shift. I think like what”
2020-06-29 · How I Built This with Guy Raz · ClassPass: Payal Kadakia · IDENTIFIED FROM THE TRANSCRIPT
“You kind of really became kind of important and a symbol for young women who wanted to become founders, especially women of color. You launched this business, you were getting a lot of attention, you were raising a lot of money, you were running it. I think the company was valued almost half a billion dollars in 2017. And that year, you decided to step down as CEO remained as part of the leadership of the company, but your business partner, Fritz Landman, becomes CEO. I mean, tell me why. I mean, I wouldn't want to be a CEO personally. I think it would be horrible and boring and stressful. I'd rather do strategy and vision stuff.”
2020-06-29 · How I Built This with Guy Raz · ClassPass: Payal Kadakia · IDENTIFIED FROM THE TRANSCRIPT
“Correct. And my favorite thing is you can now even book things like massages and acupuncture and other types of experiences that would have never fit into our class model before because we now have these new experiences in different cities that people can go to.”
2020-06-29 · How I Built This with Guy Raz · ClassPass: Payal Kadakia · IDENTIFIED FROM THE TRANSCRIPT
“I know we've definitely made a few iterations to the company, but we made that change slightly after the class packs was we realized that the class packs were a bit constraining in the sense that not every class was the same price.”
2020-06-29 · How I Built This with Guy Raz · ClassPass: Payal Kadakia · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, so we have class packs now, right? So there's like a three-pack, a five-pack, a ton pack, and then you could always add on extra classes through bundles and all our cart. So we kind of made it a bit more pick your plan and by how many times you want to work out.”
2020-06-29 · How I Built This with Guy Raz · ClassPass: Payal Kadakia · IDENTIFIED FROM THE TRANSCRIPT
“The noise was bigger than the impact it had on the business for sure, but the noise obviously still hurts, right, in the sense of, you know, you never want your customers unhappy. And that was definitely a tough, tough day. We obviously knew it was the best thing for the long term part of the business. And, you know, we're here today because of it. And we have, you know, obviously, you know, built a much bigger business since then. And that's obviously because we were able to get through that moment.”
2020-06-29 · How I Built This with Guy Raz · ClassPass: Payal Kadakia · IDENTIFIED FROM THE TRANSCRIPT
“I think that's really in the DNA of our company now, and I think we're super resilient. I've learned this, you know, to be mission obsessed as a founder and not product obsessed. It's not my product that makes this. It's us actually creating a solution, right, to the problem. And as variables change, whether there's things that change in the world, like we're going through right now or things that change in my customer's behavior, I have to be able to respond to it in a way that's aligned to the true north. And that's the one thing that's never wavered in our company is what we're fighting towards, right?”
2020-06-29 · How I Built This with Guy Raz · ClassPass: Payal Kadakia · IDENTIFIED FROM THE TRANSCRIPT
“And knock up two or three times. Yeah, and that's not the promise you want to make to people. I mean, obviously, there is a lot of data and customer testing we did. And I mean, we have so much data on like, you know, how many times people go to class and how we could change it. And we were trying to understand what human behavior would do. But what we didn't, what we didn't know is every time we would make a change, human behavior would change, right? And so we had to kind of do this testing while the airplane was in flight.”
2020-06-29 · How I Built This with Guy Raz · ClassPass: Payal Kadakia · IDENTIFIED FROM THE TRANSCRIPT
“It's very true. It is sadly very true. It's the breakage model, right? And that's not what we wanted to bet on here. It's the exact opposite.”
2020-06-29 · How I Built This with Guy Raz · ClassPass: Payal Kadakia · IDENTIFIED FROM THE TRANSCRIPT
“Yep, I think for me, even as a founder, I remember showing up to work one day and I was doing like a social media interview with my team. And they asked me, you know, Pyle, like, tell customers how many times you work out. And I was like, oh, I go to class every day. And they were like, you can't say that. Like, we don't want people to go to class every day”
2020-06-29 · How I Built This with Guy Raz · ClassPass: Payal Kadakia · IDENTIFIED FROM THE TRANSCRIPT
“We didn't go that high that quickly. I mean, we started with doing a $15, $20 increase, and then it went up to around $150. What we started doing was introducing lower packages. And then what happened was, you know, our really profitable users were obviously choosing the lower packs, which made the unlimited package even get worse in terms of our margin, right? And the people who are sticking with that product were obviously the ones who were using it a lot. And so over time, the margin of our unlimited product was deteriorating as the cohorts were growing.”
2020-06-29 · How I Built This with Guy Raz · ClassPass: Payal Kadakia · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, because at that point we were the way we were doing a lot of the discounting was it was a 50% off of their 10 class pack rate so it was obviously going to be higher, right? So we were kind of in this jam and we started doing some price increases, right? Because that was sort of the first thing that anyone could try. And what we wanted to do is really find this really nice price point where We wouldn't have people leave, right? I think the other point is fitness should be accessible, right? And I think that was a belief we had as a company. We didn't want to have like a $300 product that didn't work for anyone”
2020-06-29 · How I Built This with Guy Raz · ClassPass: Payal Kadakia · IDENTIFIED FROM THE TRANSCRIPT
“Right. Well, so we were obviously looking at the averages, right? And so in the beginning, we started seeing the numbers go up and it was on our radar. And we also then obviously started seeing our costs go up because we started getting better inventory, right? That was the other thing that happened is we started attracting the better studios, right? Which we had to negotiate better rates.”
2020-06-29 · How I Built This with Guy Raz · ClassPass: Payal Kadakia · IDENTIFIED FROM THE TRANSCRIPT
“We had ever done. We literally bought tickets for people to go into these cities. We trained them. They went in, we launched all these markets, and we did it. By January 1st of 2015, we were in 20 markets around the US and we had to build a protection shield essentially.”
2020-06-29 · How I Built This with Guy Raz · ClassPass: Payal Kadakia · IDENTIFIED FROM THE TRANSCRIPT
“Started the business and we were raising more money. I mean, by the way, six months after my Series A, I raised a $40 million Series B, right? So just think about how quickly that scaling and that growth is. And even in terms of numbers, when 2014 started and we started projecting how many cities we would be and we thought we'd be in eight cities by the end of the year. And in September, once we launched or we announced our Series A and all these competitors came out, I remember thinking we need to go much quicker. This is not going to work. We're going to lose some of our markets. We need to win. And we started this project as a team. We called it Operation 2015, which meant that we wanted to be in 20 cities by the end of the year, right? So this was launching 12 extra cities in a matter of three months. And so we hired like 60 people that weekend. It was absolutely like one of the quickest things.”
2020-06-29 · How I Built This with Guy Raz · ClassPass: Payal Kadakia · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, so now I'm dealing with multiple things happening at the same time where I can't really change my pricing because all my competitors have copied my same product, right? So everyone has an unlimited product now in the markets. We obviously were the frontrunner because we had.”
2020-06-29 · How I Built This with Guy Raz · ClassPass: Payal Kadakia · IDENTIFIED FROM THE TRANSCRIPT
“In 2014, to continue with growth, we did a summer promotion for Unlimited. And I think the other part here is we were, you know, there was no blueprint, right? We didn't know how many classes people would go to with the 99 for 10, we were seeing our average around, you know, five or six classes per customer. We didn't know if that was right. And we had people, some people telling us 10 wasn't enough. Some people telling us 10 was too much. So it was, you know, we didn't really know where the numbers should be, if that makes sense, right? We had to test different plans. And so, you know, we were in obviously heavy growth mode. So we do this promotion for unlimited summer. And at the same time, we also secure like amazing partnerships with like top tier studios like Fairy Spootcamp Flywheel with, you know, a bit of a higher price, right? So we're also dealing with a little bit of our cost structure changing from more of the premium inventory. We do this a limited summer promotion. I raise my series A. We announce it, right?”
2020-06-29 · How I Built This with Guy Raz · ClassPass: Payal Kadakia · IDENTIFIED FROM THE TRANSCRIPT
“Yes, right. So in January, once we raised our $2 million seed round, the hypothesis was, okay, can this work in other places, right? That was the number one thing we had to prove. We needed to make sure that this was just not a New York phenomenon. And so we launched in Boston and DC. And we started seeing the same traction, the same growth in those markets, which gave us confidence to say, hey, let's bring this to other markets. And so we ended up, you know, hiring more people, sending them out to these cities, expanding the team. But it was heavily a sales effort. But we were able to get cities up in a matter of two weeks.”
2020-06-29 · How I Built This with Guy Raz · ClassPass: Payal Kadakia · IDENTIFIED FROM THE TRANSCRIPT
“Correct. I always remember this conversation with one of my advisors in that fall, and he was like, Pyle, you need to focus and get rid of the passport. It's cracked to you guys. It will be a chapter in your book one day. And I remember like at that moment because it was like our first sort of child that had worked, I wasn't fully ready. But by, you know, three months later when we had crossed a thousand customers on Class Bus and I mean, you know, 90% of the reservations were coming through the ClassPass model. We knew it was the right way to go. And we luckily got the ClassPass domain. We got the ClassPass Facebook name, IG name, Twitter account. And in February of 2014, we finally changed our name to ClassPass.”
2020-06-29 · How I Built This with Guy Raz · ClassPass: Payal Kadakia · IDENTIFIED FROM THE TRANSCRIPT
“Lot of confidence with knowing exactly how I wanted to present my company with all the jazz and charisma I could. And, you know, people didn't want to believe me. It's their problem. And I would find someone who was going to, right? And I think that it was so important to me to find people throughout my journey who understood who I was. And I think everyone struggles with this. I never wanted to be boxed into any one thing, right? Like I'm a dancer and I'm a business person. I am, you know, I am short, but I am completely powerful. You know, I'm Indian, I'm American. I've kind of always needed to, I've always had this sort of struggle with sort of being like in one place, but being many things. And everyone's multifaceted. And I think when you find people who see what your magic is and can see it, it's you know.”
2020-06-29 · How I Built This with Guy Raz · ClassPass: Payal Kadakia · IDENTIFIED FROM THE TRANSCRIPT
“It's, you know, this is a great question. And I feel like it's been the backbone of my whole life, which is I had to get comfortable being different in every room. I think being different just became something I got very used to. And I think things like, you know, dancing, things, you know, staying in places and being around people who made me feel confident became ways for me to never doubt myself. And I knew I was smart. I knew I had passion. I knew I knew how to work hard. And so if people doubted me, like that's their problem, not mine. And I think I would always walk into a room with.”
2020-06-29 · How I Built This with Guy Raz · ClassPass: Payal Kadakia · IDENTIFIED FROM THE TRANSCRIPT
“Looking for cash. So I was like, I kind of remember feeling like, oh, I have to go back out there. And I don't want to come back with, you know, no cash, right? That was just not an option.”
2020-06-29 · How I Built This with Guy Raz · ClassPass: Payal Kadakia · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, we got there. I mean, when you look back at the curve that we started seeing, I mean, it just the numbers were exponential, right? We just started doubling and then we were tripling the amount of people sort of signing up for ClassPest talking about ClassPass was exponential and viral, right? And all of our marketing outside of this Lou Lemon promotion really came from people telling each other about it. So we would do a lot of referral tactics and referral marketing. And it was very much a product people wanted to do with their friends. So it was a million dollar run rate that we wanted to achieve by January. And this is basically the advice I received was, you know, once you get to a million dollar run rate, you'll be able to raise your series A, right? That was sort of what I had heard in the market at that time because”
2020-06-29 · How I Built This with Guy Raz · ClassPass: Payal Kadakia · IDENTIFIED FROM THE TRANSCRIPT
“As long as it's legal, exactly. Like, we didn't want to, we weren't obviously not, you know, we didn't want to, you know, Luluman's obviously a great, you know, partner to us now and we've done a lot with them. But it's just, you know, at that time, we were just five people in an office trying to make something happen.”
2020-06-29 · How I Built This with Guy Raz · ClassPass: Payal Kadakia · IDENTIFIED FROM THE TRANSCRIPT
“Correct. So, did I think we may have done it once or twice more, but we weren't careful. And I mean, you know, at the end of the day, you do what you need to, right? I think that was, this was like the beginning. As long as it was.”
2020-06-29 · How I Built This with Guy Raz · ClassPass: Payal Kadakia · IDENTIFIED FROM THE TRANSCRIPT
“And I remember, you know, my first instinct was like, oh no, should I be scared? But then I was like, oh my God, Lulemon knows who we are. You know, it was one of those moments where I remember celebrating kind of because we were so small, right? And to sort of be on the radar of a company like that, it made me realize like we were really onto something.”
2020-06-29 · How I Built This with Guy Raz · ClassPass: Payal Kadakia · IDENTIFIED FROM THE TRANSCRIPT
“January of 2014, correct? So between that point, what I really wanted to prove was getting to a million dollar run rate, right? So that would mean that we had 1,000 people paying us monthly for ClassPass, which was a $99 product. And that would mean that I was at a million dollar run rate. And that's like really what I wanted to get to for January. And I think, you know, this was such a fun phase for the company because every day we would, you know, have new customers and we would be doing these crazy promotions. And one of the best ways we would get customers to sign up is we did this Lulemon promotion where people would get a hundred dollar gift cards Lulon if they signed up for ClassPass and stayed with us for six months. And one day I get to the office and there's like a letter on my desk and I open it and it's a cease and desist from Lemon.”
2020-06-29 · How I Built This with Guy Raz · ClassPass: Payal Kadakia · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, so I had by that point, I actually raised a little over, I raised another $700,000 after TechSar. So what was nice is, you know, I had money to get to this point. I actually remember in the summer of 2013, once ClassPass worked, we were getting to a point where I had about three months of cash left. And so I thankfully, you know, raised a bridge round from actually Cyrus from ZocDoc helped me raise that round, which got me got me through to January, which is when I officially closed my seed round. That was going to let us launch in other places.”
2020-06-29 · How I Built This with Guy Raz · ClassPass: Payal Kadakia · IDENTIFIED FROM THE TRANSCRIPT
“Right, yeah. I mean, the dentist feels a lot more cruel than going to a younger dux. But sure. Yeah, I see what you're saying. Like in the sense of, yeah, we have a pre-negotiated price, but the whole thing is it's the discovery side. Like you probably wouldn't have ever even gone to the yoga class if it wasn't for class pass.”
2020-06-29 · How I Built This with Guy Raz · ClassPass: Payal Kadakia · IDENTIFIED FROM THE TRANSCRIPT
“We were like, hey, we have this idea. We should mention here that I think at this point you've got this model where you're paying the studios a fee for each class that your customer takes. So your customer might be paying $99 a month, but you were paying the studios a negotiated fee every time one of your customers would go to one of their classes, right?”
2020-06-29 · How I Built This with Guy Raz · ClassPass: Payal Kadakia · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, so in the beginning, I mean, we didn't really care as we were testing the concept, right? We were, we just wanted to prove that we could do this and get their attention, right? That's the number one thing in the beginning is no one was going to really, I mean, at least the bigger studios weren't going to, you know, pick up the phone. I mean, for the smaller guys, it was actually, it was fun. We would actually, you know, there were days where I would do five classes a day because the way we would really like, we'd love to kind of go into these studios was take the class with the owner and then sort of talk about class pass after, you know, sit down with them with our in our sweaty clothes after work with an iPad and talk to them about what we were building.”
2020-06-29 · How I Built This with Guy Raz · ClassPass: Payal Kadakia · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, some of the classes were $30. Yeah, absolutely. And, you know, we had a variety of different studios on the platform. I mean, there were certain studios that we just put on the platform where we didn't have like full agreements with yet because we just wanted to test. And, you know, we started sending them so much traffic that they would call us up and say, hey, like, who are you guys? Can we, you know, let's chat. Let's talk about this. And then we were able to, you know, negotiate a better rate. But we kind of were really just testing out this idea and if people wanted to do this. And as I mentioned, like people would make a reservation and then we would go fulfill it on the back end.”
2020-06-29 · How I Built This with Guy Raz · ClassPass: Payal Kadakia · IDENTIFIED FROM THE TRANSCRIPT
“Correct. And it was just exponential growth after that. And by month three of having the class pass out, it took over the passport revenue and we knew that that was the model to focus on.”
2020-06-29 · How I Built This with Guy Raz · ClassPass: Payal Kadakia · IDENTIFIED FROM THE TRANSCRIPT
“So, the Class Pass model was a monthly subscription where you could go back to any of the studios, right? Up to three times a month. There was still a cap on it. So you could try, you know, you can go to a dance class, a yoga class, fitting class, whatever you really want to do. You just couldn't go to any one place more than three times in a month. That's when we started. And it was also $99 for 10 classes when we launched.”
2020-06-29 · How I Built This with Guy Raz · ClassPass: Payal Kadakia · IDENTIFIED FROM THE TRANSCRIPT
“No, this was, I mean, we had a total of about 2,000 customers on the passport before we pivoted to ClassPass. So we're, you know, we're getting there in the sense of, you know, the chart was starting to go up, but we had a problem that still needed to be fixed, even though all these, you know, moments were great of people starting to talk about us and tweet about us. We still needed to do more work. So this is when we started to test out a monthly subscription. So in June of 2013, we sold a class pass model where we let 50 people come on and try, you know, try this out on a more monthly basis.”
2020-06-29 · How I Built This with Guy Raz · ClassPass: Payal Kadakia · IDENTIFIED FROM THE TRANSCRIPT