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Posted

No, its part of a long term strategy in the SaaS world.

 

Build scale with low cost penetrative strategy, then monetize.

 

They would have likely been running at a loss, by design, to get scale.

 

Value in growth SaaS companies does not sit in revenues or EBITDA.

 

 

Strava is still free, only some features, ones with value, are now behind a pay wall. If something has value, don't give it away for free.

I’m not convinced they were ever running at a loss. They’ve been selling the data they’ve been collecting to municipalities and city planners since day 1 as well as anyone else willing to pay to get millions of activity (and until recently personal data) insights.

 

Same as Google. Google Maps is “free”. But all they are doing is simple crowd sourcing. Using the public to actively map out the entire world, updating daily the changes and getting ready to have the entire globe mapped to the meter so they can role out autonomous vehicles that know every inch of the roads...

 

As far as Strava changes go. I’ve been a fully paid Premium Member since 2015 and will continue to do so. They’ve changed the social landscape of exercise.

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Posted

Would it be fair to offer a free subscription that has almost every feature but includes advertising, compared to a subscription based option that has everything, but is ad-free and customizable?

 

Willing to use the app with perceived irritating ads? Yes, then the advert covers the subscription fee.

Posted

Would it be fair to offer a free subscription that has almost every feature but includes advertising, compared to a subscription based option that has everything, but is ad-free and customizable?

 

Willing to use the app with perceived irritating ads? Yes, then the advert covers the subscription fee.

That would entail establishing a whole new business unit. But it could make sense if they don’t see the conversions that they anticipate.

Posted

Would it be fair to offer a free subscription that has almost every feature but includes advertising, compared to a subscription based option that has everything, but is ad-free and customizable?

 

Willing to use the app with perceived irritating ads? Yes, then the advert covers the subscription fee.

I think the days of subsidizing deliverables with advertising is drawing to a close.

 

I don't think it's unfair or out of line for a company to ask for payment. They have pretty much changed the way exercise is experienced by so many people. For Free.

 

Now it's time to pay the piper. 

 

When asked, almost everyone I know uses strava 'to keep track of their training', so the few things not for free won't stop that?

 

Will you not still get kudus and comments on how awesome you are for riding over chappies and stopping for the same IG bangers as yesterday?

 

Jokes aside, the app is still free. You just need to race yourself now

Posted (edited)

I’m not convinced they were ever running at a loss. They’ve been selling the data they’ve been collecting to municipalities and city planners since day 1 as well as anyone else willing to pay to get millions of activity (and until recently personal data) insights.

 

Same as Google. Google Maps is “free”. But all they are doing is simple crowd sourcing. Using the public to actively map out the entire world, updating daily the changes and getting ready to have the entire globe mapped to the meter so they can role out autonomous vehicles that know every inch of the roads...

 

As far as Strava changes go. I’ve been a fully paid Premium Member since 2015 and will continue to do so. They’ve changed the social landscape of exercise.

I found the article that you must have read too.

 

But from the information I have been able to google, it does indeed seem that they have required VC funding and are not cash positive yet.

 

They have raised around $40m to date with the last raising 5 years ago. Revenues seem to be around $25m pa (older data) with 300 employees (more current).

 

In the last 2 years they have switched from generating about 20% of their revenues from subscriptions to almost 100% now. I suspect this might be because of regulations like GDPR.

Edited by Patchelicious
Posted (edited)

So what alternatives are there to Strava for :

 

1) those hunting koms and interacting with other riders ?

 

2) those purely using it to keep a record of total distance covered, and relevant ride data ....

 

 

 

Just want a single point of record for three different bikes, colating Wahoo, Polar and Garmin into a single point of record.

Edited by ChrisF
Posted

So what alternatives are there to Strava for :

 

1) those hunting koms and interacting with other riders ?

 

2) those purely using it to keep a record of total distance covered, and relevant ride data ....

 

 

 

Just want a single point of record for three different bikes, colating Wahoo, Polar and Garmin into a single point of record.

1.) dunno.

2.) There's a plethora of standard apps that will do that, and across all the different platforms you mention.

Posted

But I think what I’ll do is suck your wheel up a hill to just before the summit and then you can back off so I can pass you and get a KOM

 

I know just the right one. :thumbup:

Posted (edited)

Garmin Connect mobile seems to have most of the features that Strava has, although I have not explored in detail

 

Perhaps it will gain some traction from some disgruntled Strava users

Edited by RocknRolla
Posted

Most wont, people threaten, people dont act.

 

The kind of person angry enough about their segments being behind a pay wall are likely to pay for it. It it didn't matter to them they wouldn't be angry in the first place.

 

And if those people do decide to turn off their account, the uploaded rides will still be there.

 

Will be quite funny if they get a Uh-Oh email and then not being bale to log on to see it :clap:

For some reason I assumed they'll strip the data of nonsub users, but I realise that it makes no sense, every ride logged is valuable data points for strava, so it makes sense for them to continue populating the segments with nonsub rides.

I reckon this might just be enough impetus to see a lot of conversions.

Posted

For some reason I assumed they'll strip the data of nonsub users, but I realise that it makes no sense, every ride logged is valuable data points for strava, so it makes sense for them to continue populating the segments with nonsub rides.

I reckon this might just be enough impetus to see a lot of conversions.

There is a loop hole, GDPR stimulates that you have “the right to be forgotten” meaning that upon official request, any cone needs to delete all the data that they have about you, unless it is required for them to have it by local regulations.

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