The Fitness App Market Could Be Bulking — This Company Is Even Paying its Users To Come out of COVID Healthier

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Keeping track of the financial performance of the fitness industry during the pandemic has not been for the faint of heart. Gyms and workout facilities like Life Time Fitness LTH and Planet Fitness Inc. PLNT watched monthly revenue vanish overnight as they were forced to freeze monthly membership fees with social distancing requirements keeping people away.   

The hope that people return to the gym could be on shaky ground. According to a survey conducted by Statista, 46% of respondents said they were very uncomfortable going back to their gyms. Research publication platform Cambridge Open Engage found that not only have people become sedentary during the pandemic, with a 32% reduction in physical activity, but found that many could stay that way. 

After a resurgence in 2020, the home fitness equipment boon is also waning. In spin bike phenomenon Peloton Interactive Inc.’s PTON latest filing, gross profits in the calendar 3rd quarter 2021 were $262.7 million, representing a 20% year-over-year decline compared to 2020.  Shares of home exercise equipment giant Nautilus Inc. NLS, after a massive 2020, are down 58% this year. 

So, where are the people hesitant to go back to the gym and walking away from their spin bikes turning for fitness motivation? They might be looking at their wrists and their phones. The global fitness app market is now reported to be approximately $4.4 billion. According to an IMARC Group fitness application market share report, the industry’s compound annual growth rate (CAGR) grew 20% from 2015 to 2020. IMARC expects fitness apps to continue that strong growth during the next 5 years.

Mobile fitness mobile apps are developed primarily to assist with exercise, physical training, nutrition, diet, and other related fitness solutions. The apps are downloadable to a smartphone, tablet, or internet-enabled watch. Most of these apps help users count calories, look at healthy recipes and download data on the progress of their walks, runs, or workouts. Fitness apps like Under Armor Inc.’s UA My Fitness Pal,  Apple Inc.’s AAPL Watch’s Fitness Service, and Alphabet Inc.’s GOOGL Google Fit, which powers its Fitbit wearables, are all fighting for market share in this rapidly growing sector. 

The use of fitness apps has become so commonplace, even corporate wellness programs are taking notice of increased demand for workplace solutions. According to Allied Market Research, the global corporate wellness market could be valued at $66.2 billion by 2027. 

But the key to all these fitness opportunities is incentives. People have shown that gym memberships, corporate co-worker motivation, or a phone app are not enough to keep a regular fitness schedule. One new fitness app company that has come up with a special motivation technique is Toronto-based Paid Workout. The company could almost be akin to the DraftKings Inc. DKNG of fitness apps — without the high risk of a missed field goal or free throw ruining the user experience.  

Paid Workout claims it has “gamified” the fitness app industry by incentivizing fitness and activity with money. Referring to it as “wellness gaming,” the company’s fitness app hosts a variety of fitness challenges where users who top the leaderboard win cash. It is confident that by financially rewarding people for reaching short-term fitness goals, they will be more consistent in maintaining a healthy lifestyle.

The Paid Workout app offers its users daily fitness challenges of 30 and 60 minutes, weekly 7-day challenges, and custom challenges where you can use a coach.  More than $65,000 has been paid out in the first 6 months of the company’s launch. 

In its efforts to monetize the app for the company, Paid Workout has also had a successful conversion rate of 12.5% for users moving from free to paid memberships. 

Paid Workout is seeking more “owners” in its company to keep its momentum going, offering investment through StartEngine at 65 cents per share.  People interested in investing in the company can go to www.startengine.com/paid-workout. 

For more information on the Paid Workout user experience, visit www.paidworkout.com.

This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.