soulcycle business plan

The SoulCycle Business Model: Riding for Wellness, Soul, and Community

• Imelda Rabang
• August 2, 2019

Staying fit can be fun, inspiring, meditative, and tribal. Such was the game-changing idea of New York City-based wellness brand, SoulCycle . Back in 2006, co-founders Elizabeth Cutler and Julie Rice were looking for a workout experience that was both effective and fun. Not satisfied with the workout options available at the time, the pair thought of a fitness experience that was high-energy yet intentional, and inspirational. From this idea, the SoulCycle business model was crystallized. The goal: to provide a fitness experience that goes beyond the physical.

Thirteen years later, the SoulCycle business model has established a fervent customer base. SoulCycle has a passionate following that generates 10,000 rides per day. Celebrities like Vanessa Hudgens, Kaley Cuoco, Oprah, Beyoncé, and Michelle Obama all have their SoulCycle love affair. Primed for growth and expansion, the fitness brand currently has more than 90 studios across the United States and Canada. Now under the wing of a luxury fitness company, Equinox, SoulCycle is expanding its fitness offerings globally.

Laying the Foundations of SoulCycle

Co-founders Cutler and Rice met in 2006 over what they call as “the best blind date ever”. Little did they know that this initial meeting will lay the foundations of a fitness sensation. The two came from two different industries. Rice was a talent agent while Cutler was in real estate. But they shared a common vision: they were both looking for a fitness experience that went beyond physical wellness.

A practicing yogi, Cutler wanted a fitness experience that offered the same meditative quality. Rice was a hiker-runner who wanted the same sense of community from her wellness activities. They both agreed that working out should not be a mere task to tick off from a to-do list but an activity that energizes the body, mind, and soul.

SoulCycle Starts Running

Cutler found a space in Craigslist and Rice began researching about towels. Two days after, their next meeting was held at a back lobby of a dance studio on 72nd street – the first-ever SoulCycle spin studio.

The competition was fierce. The SoulCycle business model was up against established gyms and fitness brands. But Cutler and Rice offered their facilities and classes on a pay-per-visit mode. This was a bold move. Gyms and fitness facilities thrive because of membership fees. The SoulCycle business model nurtured member loyalty by giving higher value for consumer dollars… as well as the best possible customer service to their riders. Ultimately, a community of loyal riders was instrumental for the SoulCycle expansion and growth.

The SoulCycle Business Model: Lifestyle Beyond the Bike

The SoulCycle 45-minute session is a fast-paced, high-energy, full-body workout. Instructor/gurus guide the sessions by sharing inspirational mantras to the tune of upbeat music. Studios are dimly-lit, offering riders a safe space to just let it out, overcome mental obstacles, and be their true selves. By creating a safe space, SoulCycle unleashes the strength within each rider. It is the kind of strength that has the power to transcend beyond the halls of the studio and empower riders in their daily lives.

While technology has seeped into almost every aspect of modern life, SoulCycle offers an opportunity to disconnect during classes. A no-phone policy is strictly enforced so riders can focus and be immersed in the experience. For new riders, it can be an emotional rollercoaster. Riders are pushed physically through strain from the bike’s increasing tension and attempt to keep up to the beat. However, more than burning calories, the surge of endorphins and positive and uplifting communal energy makes riders want to live a SoulCycle lifestyle beyond the bike.

Equinox and SoulCycle: Spinning for Future Growth

In 2011, American luxury wellness brand Equinox Fitness partnered with SoulCycle to bring the innovative brand to the rest of the world. The SoulCycle expansion happened fast. The following year, the first West Coast studio opened in California. More branches were launched in the Bay Area, Washington, DC, Boston, Miami, and Chicago in the succeeding years. There are now 91 SoulCycle studios across North America.

With the SoulCycle expansion, the brand’s loyal following has grown exponentially. While there are more studios across the country, classes are still booked fast. Thus, in 2015, SoulCycle launched an app for iOS to facilitate class reservations. In addition, SoulCycle has partnered with sports apparel brands like Lululemon, Lilybod, and Nike.

The SoulCycle business model has had an undeniable impact on the fitness industry. With a focus on the holistic aspects of working out, the company has introduced a whole new meaning to the word “fitness”. Through the magic of candles and a stationary bike–and a high-energy soundtrack–it offers people a new way to feel more balanced and connected.

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How SoulCycle lost its soul

The boutique fitness phenomenon sold exclusivity with a smile, until a toxic atmosphere and a push for growth brought the whole thing down.

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Not long ago, getting into a SoulCycle class didn’t just mean a 45-minute workout; it meant status. No boutique fitness class was as exclusive, and no clientele as glamorous or devoted, showing up multiple times a week to ride a bike in the dark.

In Los Angeles, Beyoncé rode with Angela. In New York, Bradley Cooper went to Charlee. When Michelle Obama was first lady, she booked private classes with Garrett in DC. This workout wasn’t just for people who wanted to get sweaty, but for wealthy, popular, and important people who wanted to get sweaty.

Inside each spin studio, every element furthered this air of aspiration and commitment: the welcoming sans-serif logo and uplifting mantras on the walls, the grapefruit-scented candles, the gorgeous instructors, the low-watt mood lighting, the chilled bottles of Smartwater, the amethyst crystals that supposedly absorb bad energy. Acolytes spoke the secret language of the initiated (tapbacks, roosters, doubles, tribe) and wore the uniform of the converted (Lululemon leggings emblazoned with the company’s skull-and-crossbones logo).

Getting into a class also meant forking over Soulcycle’s steep $34 per-class price tag at its peak. Cleaving logic from money wasn’t the difficult part. Many paid hundreds a month, attending two or three classes a day. (SoulCycle is said to have a soft limit of three classes per person per day but did not strictly enforce it.) The difficult part was booking the bikes. On Mondays at noon, SoulCycle’s online booking system would open, and an entire week’s worth of slots would be up for grabs. The best time slots with the best instructors were gobbled up in seconds. People would do whatever they could to game the system — a system that was designed to keep people out instead of letting them in.

During the height of SoulCycle’s popularity from 2013 to 2015, front desk staffers at New York City’s flagship NoHo location had to stop answering the studio’s three phone lines at 11:50 am at the beginning of each week. Savvy riders figured out that if they called a studio and found an unwitting employee, they could stall them on the line until noon, pleading to have a bike booked through the studio’s back end. Those riders learned to avoid asking for managers and targeted the newbies.

“You had people saying, ‘I logged on right at 12:01 and everything was sold out,’ and we’re like, yeah, no shit,” says Rachel, a former SoulCycle employee of six years, laughing at the imagined computer glitch. “You have people calling, emailing, and complaining, going, ‘Where am I on the waitlist? Your system is broken.’ It’s not broken. There are just a lot of people trying to book for the same class.”

According to former staffers — all of whom, like Rachel, are being referred to by pseudonyms, either because they have signed NDAs or because they fear pushback from the company’s wealthy, well-connected riders — chaos rippled across the country every Monday. Extra staffers were assigned at flagship locations just to accommodate the deluge of calls, emails, and walk-in schmoozing from riders hoping that some extra effort could get them into a class.

“If you emailed us and asked, we would try to do that for you, because we were a culture of yes,” Rachel explains. “You had riders who had special relationships with front desk staff who, come Christmastime, would give them bottles of booze, $500 Amex gift cards, and their daughter’s old Dior bag they didn’t want anymore.”

You could call SoulCycle a phenomenon, a craze, lightning in a bottle, but that doesn’t fully capture the fanaticism.

“The cult thing was real, but in a positive way,” says Rachel. “Because it was a family, right?” Everyone involved felt like they were part of creating something new and important, and in many ways they were. SoulCycle revolutionized the fitness industry, and was, for years, its sexiest player. It made working out transcend being a chore or even a necessity, becoming something spiritually and physically empowering, possibly even emancipating.

The brand touted community and used words like “tribe,” “crew,” and “posse” to sell its experience. But behind mantras like “we inhale intention and exhale expectation” and “our own strength surprises us every time” was rampant gossip about which instructors were sleeping with which riders, secret lists of instructors’ favorite and least favorite clients, and dehumanizing language from some of the most privileged people in the country. Everyone wanted to be on the inside, and exclusivity begat bad behavior from instructors and clients alike.

At the end of 2014, according to an IPO S-1 filing , the company was seeing revenue of $112 million, coming from more than 30 studios. That year, the company sold 2.9 million rides on bikes that went nowhere.

When the phones stopped ringing just a few years later, Rachel knew something was wrong. The asks for favors stopped coming, strings didn’t need to be pulled, the anxiety that her body had sharpened into instinct was gone. The IPO never materialized. The tribes, crews, and posses had dwindled.

“It was awkward because we still had all this staff, and then we’d just be sitting around like, ‘Wow, Monday was really quiet today! ’ ” she says. “It started to feel awkward and uncomfortable because you were used to this energy and then it got silent.”

The quiet preceded more quiet. By 2017, SoulCycle had more studios than ever, more instructors than ever, and a plan to keep expanding to more cities, but it also had more empty rooms and not enough riders to fill them, according to studio employees and instructors I spoke with. In 2020, the pandemic crushed the company financially, forcing it to shut down studios across the country and furlough employees.

On the surface, the pandemic ravaged SoulCycle the way it did many companies, especially those in the group fitness sector. But according to former instructors, executives, and other staff, the pandemic didn’t ruin SoulCycle. Rather, they think it simply sped up the company’s inevitable downfall.

SoulCycle was never built to be for the masses. Keeping people out was, it seems, just as important to the business as loyal riders. The bigger SoulCycle got, the less desirable it became. The less desirable it became, the less people had tolerance for the culture it fostered. The minute the company became mainstream, the magic dissolved.

It’s impossible to scale exclusivity.

“I still remember the morning that I decided to quit,” Rachel says, describing the pressure she felt in her chest. “I finally had to put myself first. I felt like they weren’t taking care of me anymore. So how could I justify giving my life to them?”

SoulCycle is the brainchild of talent manager Julie Rice, realtor Elizabeth Cutler, and instructor Ruth Zukerman. The three opened up the first SoulCycle studio on 72nd Street on Manhattan’s Upper West Side in 2006, believing they could change spinning, making it less of a chore and more recreational. The room was all but hidden. It lived in the bones of an old dance space, tucked away in the rear lobby. The studio wasn’t visible from the street level, and signage couldn’t be put out front due to the building’s landmark status. The founders defied this rule by propping a yellow rickshaw outside, as well as a sandwich board that earned them daily tickets.

This stealth branding “actually became a plus,” Zukerman says, as it added to the allure. (Zukerman left SoulCycle in 2009 and founded the rival spin company Flywheel in 2010, which she exited in 2018. Rice and Cutler did not respond to requests for comment for this article.)

SoulCycle became known only through a whisper network. One had to have heard about the spin class from a friend. Luckily, the city’s wealthy, trendy, and fit run in tight-knit cliques that generated enough buzz to fill the studio’s 33 bikes.

“You have to realize that circle of people is pretty small,” Zukerman says. “So when one person talks about it, everybody hears about it. It just goes down the chain.”

The game changer was the business’s second studio, the Barn. Opened in 2007 and still in operation today, the cavernous space holds 75-plus bikes (depending on how generous the fire marshal is feeling that day), and, better, it’s in the Hamptons, where affluent Manhattanites go to escape summer in the city.

“The Barn had just opened up,” a former SoulCycle rider says, “and I remember Charlotte Sarkozy telling me, ‘Oh, my god, there’s this super-hot lesbian teaching this amazing workout. All the mothers are in love with her. The workout is so good.’ Her group all went — five or six of them in the clique — and when summer ended, it carried on into the city.”

(For those unfamiliar with French social hierarchies, Charlotte Sarkozy is the ex-wife of Olivier Sarkozy, half-brother to former French President Nicolas Sarkozy. Olivier is also, perhaps more importantly, Mary-Kate Olsen’s ex-husband.)

Zukerman says that after that first summer in the Hamptons, she started seeing Escalades lined up outside the Upper West Side studio’s 9:30 am classes.

The actual SoulCycle workout has remained relatively unchanged in the 14 years the company has existed, still largely the same as the one Sarkozy was gushing about. Classes are offered in 45-, 60-, or 90-minute iterations; they take place in studios that are totally dark except for some lit candles and mood lighting around the instructor’s podium that leave just enough visibility to see reflections off the sweat on everyone’s bare skin. The goal is to get the entire class in sync to the music, so that each pedal stroke is in unison.

I got hooked when SoulCycle opened in DC. I can vouch for Soul’s combination of fun and physical results (I lost 25 pounds during my first year of riding). I left every class I took — more than 1,000 over six years — with a puddle of sweat under my bike. This is how I knew that the “super-hot lesbian” in question was Stacey Griffith, a SoulCycle senior master instructor.

Putting instructors front and center is a reversal of the usual exercise class. Before the era of boutique fitness that SoulCycle ushered in, people would join gyms or take group classes at yoga studios where the workout was more important than the teacher. SoulCycle changed this.

In 2007, SoulCycle regulars didn’t take SoulCycle; they took Stacey. Or they took one of her fellow original instructors like Laurie or Rique. Each had their own specific style, clientele, backstory, and favorite music they brought to workouts. The idea of a teacher being more important than the workout persists at SoulCycle today. The instructors named herein did not reply to requests for comment.

Griffith, who still teaches, apparently taught that Barn class so well, and was so charismatic, she could coax a crush from the frostiest of uptown moms. She, like the other stars, was also compensated handsomely for attracting riders to her classes. According to two former employees, she made a minimum of $800 per class — what former staffers say is probably the highest per-class rate in the history of the company. Top Soul instructors could make over $400 per class.

At 15 classes per week, Griffith’s rate adds up to more than half a million dollars a year. That doesn’t include incentives like sellout bonuses, which some instructors received, that could push the per-class rate to above $1,000. Nor does it include gifts from riders: holiday tips and gifts, fancy meals, trips to vacation homes. After the rise of Instagram, instructors were able to further bolster their salaries with sponsorships and ads.

Cutler and Rice (who in their pre-SoulCycle days had a hand in creating careers for the likes of Ellen Pompeo, Selma Blair, and Justin Long at Hollywood’s Handprint management firm) were fantastic at finding talent. They recruited instructors who could cut through the noise of New Yorkers’ lives and convince them to carve out an hour to go to Soul. If instructors didn’t know how to do that naturally, SoulCycle could teach them.

Master instructor Janet Fitzgerald was hired to train would-be SoulCycle stars not just on how to ride but also on what makes a class a success: the different kinds of songs that should make up a session’s playlist, how a track’s BPM dictates the mood, how to position the candles. To this day, she teaches trainees the “messaging” of SoulCycle — the uplifting credos that jaded New Yorkers would consider corny if muttered in any other setting (“Be obsessively grateful!” “We ride as one!”). She teaches them how to memorize their riders’ faces and names.

She also teaches them how to market desire, a key part of Soul’s appeal.

“Your riders should want to be you or fuck you. That was the mantra, ” a former instructor I’ll call Bobby says. “And those two concepts are not mutually exclusive.”

Bobby says Janet gave him the “be you or fuck you” speech in front of other trainees around seven years ago. Another instructor who was in the room with Bobby and Janet confirmed Bobby’s account: “It was so fucking awkward.”

Multiple instructors and staffers report that Fitzgerald often says things like “sex sells” and encourages trainers to wear red lipstick. She refers to her riders as “little sluts.” Her Instagram handle is “SpinPimp.”

Bobby taught at Soul for more than five years. In the beginning, he says, when he was struggling to fill his classes, Fitzgerald told him he needed to get laid. He says he watched Fitzgerald grill another instructor about keeping the beat and teaching a better class, asking the woman when she and her husband last had sex.

A former employee shared a photo with Vox of a sticky note that hung in the studio’s office. On it, a quote attributed to Janet said that if riders start asking if they were on cocaine or say that they look like they had an eating disorder, it means that instructors are hitting their goal weights.

While Fitzgerald is explicit about marketing sex in training sessions, the push is more implicit on the client-facing end. Around 2011, instructors started skewing younger, with sharper jawlines, more defined cheekbones, and abs that seemed to have their own set of abs. Some were part-time models, and many posed in SoulCycle’s retail designs for the website.

Whether or not instructors follow Fitzgerald’s red lipstick suggestion, the idea is that they be able to pull riders into their orbits. They need to make their classes can’t-miss events and convince riders that a bike in the second row was better than one in the back, but not as good as in the very front. There was always more for riders to want. Some riders would even take two or three classes back to back with the same instructor.

Not unlike American Gladiators or Cher, the best Soul instructors were always known by their first names — Stacey, Akin, Angela, Charlee, Danny, Karyn, Pixie. Sometimes, they’d gain notoriety from the A-list celebrities who took their classes, like soccer star David Beckham or model Karlie Kloss. As SoulCycle grew in popularity, instructors began appearing in music videos for Kid Cudi and Zedd. They posed for magazine spreads and went on morning talk shows ; some were featured in Page Six . They became mini celebrities.

“I remember checking the Hamptons frequently throughout the summer of 2013,” Shawn, a former staffer who worked at Soul for four years, says of Griffith’s classes. “There were over 300 people on her waitlist, and that’s a big studio, so there were 70 bikes in the room.” By the morning of the class, he says, “the waitlist was over 400.”

When Cutler, Rice, and Zukerman started SoulCycle in 2006, the term “boutique fitness” hadn’t fully been established yet. Traditionally, people who had enough money and cared enough about exercise belonged to gyms. Those gyms had a plethora of classes to take, spin classes included. CrossFit , which also revolutionized moving fitness away from gyms, was founded in 2000. Standalone yoga and Pilates studios existed too, but exercise was largely tethered to gyms.

The SoulCycle founders smashed that notion with a velvet hammer.

Before starting the company, Zukerman taught classes at the Reebok club, a full-service gym that offered every kind of group fitness class you could imagine, as well as a basketball court and an Olympic-size swimming pool. “But what I noticed,” she says, “is that the lines for my spin classes started getting longer. Everybody who took spin class only took this class. They didn’t use the gym for anything else.” Zukerman took those lines as “a huge sign” that if there were a studio just for spin, people would skip the gym entirely.

The idea of the “SoulCycle experience” was to become a destination — in order to experience the best spin class in the world, you had to go to SoulCycle. The playlists would be tailored. The workout was synchronized to the music. The instructors were specifically trained to teach spin.

A testament to SoulCycle’s early business plan is that it withstood the market collapse of 2008. You would think a luxury spin class would be one of the first things people cut from their budgets during a recession. But that never happened. A major part of that was how affluent SoulCycle’s clientele was. Even if everyone was tightening their belts, Zukerman says, her riders didn’t see “feeling good” as an expense they would cut.

The other saving grace during the recession was the shift toward less visible forms of wealth and status. The term “ stealth wealth ” popped up to describe how rich people began shying away from consumerism that actively flaunted their income — cars, clothes, bags. Minimalist labels and less flashy brands thrived. Luxury health and wellness benefited from the effect too, seen as ways to spend money and not seem gauche or insensitive.

SoulCycle capitalized on its insider status and became the definitive spin experience. To put it in perspective, the company achieved all of its success without launching a national advertising campaign, something the company finally did in 2017 . According to the International Health, Racquet & Sportsclub Association , group cycling participation jumped from just under 5 million participants in 2010 to over 10 million in 2019 — the IHRSA largely credits SoulCycle and boutique spin companies with the increase.

Cutler and Rice knew how to make every person at a studio, from maintenance staff to front desk workers to instructors, feel like they were doing something valuable. They made it known that no task was insignificant and that the company was more of a family than a business. This allowed even the most arduous parts of the job to seem like something to be grateful for.

“Our front desk, we would have to get up and set up for 5 am classes,” Rachel says. “That means we had to be at the studio no later than 4:30, but we wanted to do it. We were pumped to do it.”

The mantra that front desk staffers learned was “find the yes.” Soul was “a culture of yes.” Employees should always go above and beyond to make things happen for the clientele. That could mean taking extra time to teach a new rider to clip in to a bike, holding someone’s luggage behind the desk, or charging a rider’s cellphone while they’re in class. Cutler and Rice knew small acts of kindness made all the difference.

But being a “culture of yes” had a toxic edge.

“In the beginning, that meant you give the socks off your feet to a rider if they forgot their socks,” Rachel explains. “I’ve literally seen people do that. That built that sense of community — ‘We would do anything for you’ — but what that became actually was something sort of abusive internally and externally.”

The byproduct of building an entire brand around service and scarcity and “noon on Monday” is that inevitably some clients don’t get the things they want. Certain instructors’ classes were getting more and more popular. More people were getting shut out. Shutting people out made those classes even more desirable. Star instructors were given a lot of control over something very valuable.

Veteran riders knew that beyond the official waitlist, some instructors had their own waitlists to ensure their favorite regulars got bikes. Studios also had what was called a “move list” — a list you can put your name on to get closer to the front row. Some instructors also had “secret” move lists to dictate who was good enough to sit in their front rows. Having a front row full of seasoned riders who could hit the choreography looked cool, but it also allowed newer riders to watch and keep up with the class.

Founding senior master instructor Laurie Cole is often cited — by front desk staff, corporate employees, and instructors — as someone who took advantage of her star status.

Cole, according to multiple former staffers, instructed administrators to hold her front row bikes so that she could put her best and most attractive riders on them. She would yell at staffers if they put “the wrong person” on a bike she didn’t feel they deserved.

“She would say, ‘I don’t want that person in my front row,’” a former employee says. “She would say, ‘I don’t like the way they ride. I don’t like their attitude. I don’t like the way they looked at me. I don’t like looking at them.’” Several other staffers confirmed this.

Another employee says Cole fat-shamed a rider over her microphone during a class and often belittled the cleaning crew. One studio manager created a folder of screenshots that they shared with Vox, which included emails and texts from Cole berating staff about her front row, a text message fat-shaming an employee working the front desk, and multiple messages criticizing the studio managers.

Studio staff say they also had to deal with vitriol from riders, some of whom were unwitting victims of instructors’ bad behavior.

Shawn, who worked at New York City’s NoHo studio from 2012 to 2016, recalls that a popular instructor once told him not to let a specific rider book what’s known as the “boyfriend bike” — the bike that’s directly in front of the instructor’s podium. The instructor said they didn’t want to look at the rider.

The rider was able to book the bike anyway, and so the staffer, honoring the instructor’s wishes, moved the rider.

“She called literally within 30 seconds of me doing that, because you get a notification email when your bike gets moved, and began verbally assaulting me,” Shawn says. “The words she used, oh, god. She called me stupid. She called me the r-word even. She belittled me based on the fact that I worked there. She threatened to come into the studio and ‘fuck us up.’ And it was all because I moved her one [bike] over.”

Several front desk staffers said that being yelled and cursed at was a regular occurrence. While SoulCycle was promoting a culture of community and belonging, it was also serving privileged adults indulging their worst impulses.

The exclusivity also drove riders to form cliques. Several employees note that the most notorious riders were a faction of what’s known as Akin’s Army — riders devoted to instructor Akin Akman. Former employees say that though Akman, who now has his own fitness company, AARMY , with fellow ex-SoulCycle master instructor Angela Manuel-Davis, was always friendly to staffers and clients, some of his riders were another story.

“They would bully people who booked front row bikes and would confront them in the studio physically,” Rachel says. They would then fire off emails to “Your Soul Matters,” SoulCycle’s customer service inbox, and complain about how the rider ruined the experience. “I watched grown women cry,” she adds.

Instructors often fed into their riders’ loyalty, both intentionally and unintentionally. Many would hang out with their most adoring fans outside of class, and those riders would then talk about having drinks with their favorite instructor within earshot of other riders, resulting in even more hostility.

“Think about it: Riders are getting to the studio 30 minutes before class, taking three back-to-back classes at 45 minutes each, then you’re hanging out with him afterward. These women are spending five, six hours a day with him,” Rachel explained about Akin, but also said many instructors shared these kinds of relationships with riders. “His full-time job is taking care of this flock of women following him around.”

It wasn’t uncommon for riders to see their instructors as much as, if not more than, their friends, families, and partners.

“That’s when you get this competition and people are fighting over the attention of the instructor,” Bobby says. “Some people would walk out in tears because Conor didn’t go up to their bike.”

Conor is Conor Kelly, a star instructor whose home base was Greenwich, Connecticut. The friction among his cohort, according to three former staffers, was due to his reputation for allegedly having sexual relationships with riders. Soul instructors giving their clients off-the-clock rides was a regular occurrence, sources told Vox. Indeed, the company became known to Barstool Sports fans when founder Dave Portnoy’s then-girlfriend allegedly slept with a New York City instructor (in retaliation, Portnoy and Barstool fans dubbed it “CuckCycle”).

Those relationships could create more problems, and an oft-repeated story of Soul sabotage centers on Kelly: While studios usually have lockers, the women in Greenwich would line up their handbags and makeup pouches neatly in a row in the studio bathroom, in order to reserve spots in front of the mirror to freshen up after class. Someone apparently thought Kelly was giving too much attention to one rider, who he let ride on the podium with him. Later, employees say, the rider found a used tampon in her purse.

Despite the claims of bullying, these riders would keep coming back to SoulCycle, and employees would endure it. In retrospect, employees like Rachel and Shawn recognized that the odious behavior was more common than uncommon. Rachel found the conduct emotionally exhausting and draining. Shawn says he became more disillusioned the longer he worked there, recognizing that toxicity was more of a feature than a bug.

Even if this was a place where feelings were hurt, adult men and women were still eager to belong. The high is a little like being a popular kid in school. The bullies and bullied alike were part of something. It might have felt awful, but it was better than being on the outside.

“SoulCycle loves to pretend that it’s inclusive when, in reality, it only exists and functions off of extreme exclusivity,” Shawn says. The power dynamic between instructors and riders and staffers could also veer into uncomfortable territory.

More recently, allegations surfaced that instructor Mike Press pressured a rider to perform oral sex on him. The rider, according to Business Insider , says she alerted SoulCycle about Press and was ignored.

SoulCycle responded to allegations against Press and stories about instructors’ bad behavior in a statement to Vox:

At SoulCycle, our priority has always been to build a community centered on our core values of diversity, inclusion, acceptance and love. When we receive complaints or allegations related to behavior within our community that does not align to our values, we take those very seriously and both investigate and address them. We are committed to continuing to make improvements and ensuring that we live up to the values that our teams and riders expect of us.

There’s a direct relationship between the company’s cool factor and the amount of mistreatment endured. It was easier to gloss over outbursts and cattiness during the glory days, when SoulCycle was still the hottest fitness brand. When classes weren’t selling out anymore, when it got quiet at noon on Mondays, it was harder to ignore the bad behavior.

In 2011, the Related Companies real estate firm took a majority stake in SoulCycle, putting it under the auspices of Equinox, the luxury fitness giant its principals partly owned. This purchase helped SoulCycle expand to 36 studios by 2014; Equinox’s plan was to add around 15 or more each year. The objective, for the parent company at least, was for the spinning studios to be everywhere.

SoulCycle filed a registration statement in 2015, the first step in taking a company public with an IPO. According to SoulCycle ’s filing, each of the company’s studios was generating an average annual revenue of $4 million. That same year, Melanie Whelan was named CEO, and Cutler and Rice took spots as chief creative officers.

Former employees say that Cutler and Rice clashed with Equinox chair Harvey Spevak. He didn’t like their cavalier spending. They didn’t like Equinox’s focus on streamlining and scaling the business they created. When the company hit 60 studios in 2016, Cutler and Rice left with $90 million each. There was never an IPO.

A vanishing IPO isn’t necessarily cause for alarm or a sign of financial weakness. But it does signal something changed. David Erickson , a senior fellow and lecturer at Wharton and an expert on IPOs, told me that SoulCycle’s S-1 filing was used as an example in one of his classes around the time it was filed.

“I was a big proponent of [the IPO]; I thought it was gonna be great, because it was a great growth story,” he told me. “Just like Shake Shack, it was only, like, 30 stores. And huge margins, and they sell [retail clothing] to people — the shirts sell for [around] $80 that cost like $5? So it was a great story.”

Erickson said SoulCycle’s numbers and projected growth were similar and compared favorably to Shake Shack, the now-inevitable burger chain from Danny Meyer. He explained that SoulCycle’s business seemed even stronger when you consider the relatively low and sustainable overhead costs of just getting people into a studio. It’s not like the company was purchasing buns, meat, and ice cream every month. And their growth rates were even higher than what Shake Shack was doing.

“When a company withdraws a registration statement, that just means something’s changed,” he said. “It could be they don’t think there’s an opportunity for them to go public. It could be they potentially see another strategy, where maybe they sell it themselves to somebody. And it could be financial issues, but not always.”

Erickson said that while he was a SoulCycle rider (in the back, he said), he wasn’t intimately familiar with the business’s inner workings. But he did follow some of the company’s news. He said that a confluence of factors, including the co-founders stepping away from the company, the debt needed to buy them out, and the growth of the group fitness industry, especially with Peloton’s boom, could all be reasons it was pulled.

Only the board and SoulCycle’s top executives know for sure why the IPO never came to be; one former executive believes the IPO was a hollow gesture that was never meant to happen.

It was also becoming clearer that rapid expansion wasn’t the right move. The more studios that opened in hubs like New York, DC, and San Francisco, the more empty classes could be found, former employees said. Equinox didn’t seem to understand the impossibility of scaling exclusivity. Taking the magic of NoHo or Union Square’s back-to-back-to-back sold-out classes and trying to replicate it 20 times over wasn’t going to happen.

“The faster we grew, the more diluted the brand became,” a former employee says. “These friendly, familiar faces were gone.” SoulCycle had been a startup, and the Equinox purchase meant that its future would be growth at any cost.

Internally, morale began cratering.

The corporate directive seemed to focus on “numbers instead of people,” and former employees say studios started to see budgets cut and stringent rules about expenses. Instead of “find the yes,” the directive became, effectively, find the no that saved the most money. Instructors who weren’t grandfathered in saw their base pay rate slashed, and the pressure to fill classes was intense.

Even Griffith, who briefly left New York for Los Angeles, wasn’t able to fill up rooms as easily.

This is the point when Rachel, who worked her way up at SoulCycle, realized the phones had gone quiet. The Monday noon rush stopped. SoulCycle devotees didn’t want to ride in an empty room or with new teachers. With sparsely attended classes, grumpy instructors, and a front desk staff that wasn’t, literally or figuratively, able to give you their socks, the company lost its core base of riders.

The “SoulCycle experience” no longer existed.

“The identical thing happened to Flywheel, which is the new people in charge had absolutely no idea what these businesses were about,” Zukerman says. She witnessed SoulCycle’s boom from a rival’s point of view, and saw her own competing business flourish. Zukerman also observed firsthand how much the group fitness industry had expanded since those early rickshaw days on 72nd Street, and the perils that come along with that kind of massive growth.

For those “new people in charge,” as Zukerman puts it, the goal was different. “They’re focusing on meeting the bottom line. The bottom line is making as much money as they can, as quickly as they can,” she says. “When that became the focus, everything else got lost.”

While trying to chase that bottom line, the company also committed the crucial misfire of underestimating its competition. Peloton, the at-home fitness brand known for its spin bikes, had been growing exponentially since introducing its at-home bike in 2014. As Marketwatch reported , “in its 2019 fiscal year, Peloton recorded revenue of $719.2 million from sales of its fitness machines, up from $348.6 million in 2018 and $183.5 million in 2017.”

During this time, SoulCycle tinkered with the idea of creating an at-home bike of its own but never fully committed, a former executive says. SoulCycle didn’t see the company as competition at first. Soul was selling the feeling in the room, while Peloton was selling an at-home workout. It wasn’t until it saw Peloton’s growing success, and its own empty rooms, in 2018 and 2019 that SoulCycle decided to explore that market.

SoulCycle’s at-home bike and attendant app weren’t ready to go until 2019, but then were delayed further by Equinox, according to two people with knowledge of the matter. The bike was SoulCycle’s Hail Mary; there were more studios bringing in money, but the studios were not exceeding their revenue goals, according to two former employees with knowledge of the numbers.

In a statement to Vox, a SoulCycle spokesperson said its studio numbers were actually better in 2017-2019 than in its early years. “As we have scaled the SoulCycle experience and introduced the brand to new markets, we have increased our average utilization,” they said (utilization is the term SoulCycle uses to indicate how full a room is). “Over the course of 2017 to 2019, we filled 65% of our capacity on average compared to 61% on average from 2014 to 2016.”

A former longtime New York City employee with knowledge of those numbers said utilization could be bumped up by SoulCycle cutting low-performing classes or shortening studio hours. That could explain the revenue goal misses while keeping utilization percentages slightly higher. In year-end documents provided to Vox, the raw number of New York City metropolitan-area paid rides — which represented roughly 25 percent of SoulCycle studios worldwide — declined from 1.89 million in 2016 to 1.62 million in 2019.

Meanwhile, instead of pushing SoulCycle’s separate app and at-home bike, Equinox allegedly used the app and model to create its own app and fold in SoulCycle, undercutting the work the SoulCycle team had put into it, a former executive said.

Then, in the summer of 2019, on the day that SoulCycle finally announced its at-home bike, the company found itself at the center of Stephen Ross’s pro-Trump fundraiser controversy. Ross, who owns Related, which has major stakes in both SoulCycle and Equinox, was publicly backing a president known for xenophobia, sexism, and racism. SoulCycle’s teachers revolted. Riders felt betrayed. The corporate office, which had already seen rapid turnover, was emotionally crushed. To many, Trump’s values ran counter to everything SoulCycle stood for . The company’s message of community, already degraded, felt even more hollow to those tasked with keeping up the facade.

Whelan — who some workers described negatively as a detail- and budget-oriented “spreadsheet” and others acknowledge positively as a leader in a thankless role — resigned as CEO in November 2019 as SoulCycle opened its 98th studio in Notting Hill, London .

On December 1, 2020, SoulCycle named Evelyn Webster, the former CEO of the Guardian, its new CEO. The company’s CFO Sunder Reddy acted as the interim CEO between Whelan and Webster. In its announcement of the leadership change, SoulCycle said building “company culture” would be one of Webster’s immediate goals.

The pandemic has ravaged SoulCycle, like it has the entire group fitness industry . Studios can’t open because of transmission risk. Without open studios, revenue disappears, though rent on the nearly 100 studios still needs to get paid. Some instructors have been furloughed, and others have been laid off. This summer, SoulCycle closed its famed Union Square studio, as well as outposts in Toronto and reportedly Malibu.

In May, parent company Equinox was granted an extension to delay repurchasing a portion of SoulCycle’s debt. That figure, S&P Global Ratings stated in June, was $72.8 million . Moody’s, the bond credit rating business, downgraded Equinox’s debt rating in November and surmised that it “will not have enough cash on hand to satisfy its obligation as a guarantor of SoulCycle’s credit agreement.” Equinox has just a few cold, coronavirus-ridden weeks to come up with the money by its February deadline; even with a vaccine in sight, it’s a tall order.

The good news for Soul is that it finally has its at-home bike, and its Soul Outside classes (which take place outdoors with social distancing) have been selling out. With all of its New York City and its California indoor studios closed, SoulCycle is popular again.

According to the company, there are nearly 30 outdoor locations, many operating classes with significant waitlists. There’s some divine symmetry there, a noon-on-Monday indicator from above.

“It’s funny, because now that they’re doing these rooftop classes, it’s kind of like what it used to be,” says Bobby, the former instructor. “You know? You can’t get in.”

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An IPO With a Soul: How the "Job to Be Done" Brought Strategic Focus to SoulCycle

• 10 Aug 2015

Think SoulCycle’s secret to success is all loud music and loads of sweat? Think again.

With an 85% loyalty rate among its riders, SoulCycle is a prime example of a company that’s perfectly nailed its customers’ “job to be done,” built all the right experiences around that "job", and then let its marketing and branding follow suit. In doing so, the company elevated itself into a “purpose brand," resonating with consumers and turning one-time riders into “soul” advocates.

The jobs-to-be-done framework was developed by Harvard Business School Professor Clayton Christensen to explain why people make the consumption choices they do. What makes this idea so powerful is that the job to be done pinpoints exactly what actually causes consumers to purchase one particular product or service over another under a given circumstance.

Consider for a moment what job health consumers are really trying to solve: most health clubs and fitness studios would probably tell you that it’s to get more fit. Sure, this may be true. However, it's not the full story. For some consumers, gyms are “hired" for their social and emotional aspects - the feeling of being a part of something bigger, or of having that moment of catharsis when you know you've pushed yourself to the limit. When viewed in this context, it may not just be another gym you are competing with to fulfill this job; alternatives might include running a marathon, joining a book group with friends, or even a night out at the club.

In discovering this job to be done, SoulCycle was able to tailor its product in an entirely differentiated way and then integrate all the right experiences around it. From the moment of check-in until the end of the ride, the SoulCycle experience is designed to deliver on aspects of community, atmosphere, emotion, storytelling, and most of all, being part of a movement that is bigger than yourself (not to mention providing a pretty darn good workout).

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A brief history of SoulCycle: How a cycling company sparked hate and hype for an entire industry

People are willing to pay a lot to find their souls. But will their love for tap-backs persist in the face of the pandemic?

If you work out (or know someone who does) you’ve probably heard of SoulCycle, the boutique indoor cycling company with fewer than 99 locations , but a brand presence that stretches beyond the studios and around the world. SoulCycle is known for it’s cult-like following, through classes that elicit obsession, all-consuming passion, and even a hypnotic state (perhaps from a combination of endorphins, candlelight, and a well-known grapefruit scent emanated from said candles).

It might sound a little over-the-top, but that’s because over-the-top is exactly what SoulCycle is, and why the luxury workout gets so much hype (and flak) from far and wide. Whether you love it or hate it, SoulCycle has maintained relatively steady growth on social media throughout the years, which is just one testament to its loyal fan base. 

Here’s a brief history of how SoulCycle came to be, what’s got riders so eager to find their souls, and why the brand’s been on a bumpy ride since the pandemic hit. 

It began with a “blind date” 

  Rewind to 2006: Spin instructor Ruth Zukerman introduced two of her clients — Elizabeth Cutler and Julie Rice — to one another and they immediately hit it off. “It was the best blind date we’d ever been on,” Rice has often said about their lunch at Soho House. The three went on to found SoulCycle a mere four months after their meeting. It was a seemingly perfect match: Zukerman’s experience teaching spin lent itself nicely to Cutler’s desire to find (or, create) a luxury indoor cycling option since she moved to New York City. Rice saw the possibilities in charging clients by the class , and rest was history. 

Based on SoulCycle’s popularity, you’d probably assume the brand quickly went from grit to glam, but that wasn’t exactly the case. The first studio had just 33 bikes, according to The Cut , and was set up in a former funeral home the women had found on Craigslist; the front desk, an Ikea set-up in the back of station wagon parked in front of the Upper West Side studio, and the now widely-regarded SoulCycle logo, painted on a rickshaw that also sat out front. Not exactly the pristine studios you’re used to seeing with motivational quotes on the walls and 50+ bikes per class, but it did the trick to get people hooked. One year later, a second SoulCycle studio was opened in the Hamptons and was met with immediate success.

A culture of cliques and front-row fanaticism

Come 2009, Zukerman left Cutler and Rice behind in their executive roles and stepped away from SoulCycle to found its biggest competitor, Flywheel, just one year later in 2010. The why? She wanted to get away from the very ambiance she helped create. “The cultures at SoulCycle and Flywheel were completely different. At SoulCycle, we very quickly became the club you can’t get into, and that has a lot of appeal to a lot of people,” Zukerman said on the Wharton Business Daily podcast . “When we started Flywheel, I wanted to go in the complete opposite direction, purely because it was more of who I am and I wanted those other people to have a shot at it. So we tried to make it as open and welcoming to everybody as possible.”

But that’s just it about SoulCycle: Loyal riders love the exclusive nature and “tribal experience ” that comes with taking a class not many can afford, and even fewer might excel at. To maintain an air of us-and-them, there’s a rather high barrier to entry to finding your soul. Unlike Flywheel, SoulCycle does not offer memberships. Instead, you’ll be charged between $30-$36, depending on studio location, for each class, and you’ll want to grab a few more dollars on your way out the door if you plan on renting shoes and purchasing water. 

You’ll likely want to book your class online, too — if you want to get your bike of choice, that is. Classes for the week ahead open up each Monday at noon, and the most dedicated riders are known for marking it on their calendars and grabbing their spots right away (the phenomenon is so widely known amongst regulars that SoulCycle sold a “Monday at Noon” shirt at one point). 

Keep in mind, you probably (read: definitely) won’t want to grab a front-row bike if you’re a first-time rider or are still getting the hang of busting dance moves, maneuvering dumbbells, and peddling all at the same time. While anyone can book a front row seat, it’s typically “reserved” for the best riders who can keep up and practically complete the dance moves in their sleep. Some instructors go as far as pre-approving clients who can ride in the front, according to a New York Times report , and encouraging newbies to head to the back. The writing on the wall is a little gentler (yes, there is literally writing on the wall outlining class etiquette): “ There is a direct correlation between your energy and your neighbor's ride. If you want to do your own thing, please don't ride in the front row."  

If you’re willing to pay up and can handle the pressure of the front row (or the sting of getting bumped to the back), then SoulCycle might be a good fit. After all, regular riders claim it’s become their happy place, provided them with therapeutic and spiritual experiences, and in some cases, helped them cope with addiction . Celebrities swear by it, too, and if you’re lucky you might run into David Beckham emerging from an early morning class. 

But there’s also those who can’t be persuaded by the elitist culture, and even former riders who exited the dimly lit studio, saw the light, and never looked back.” While this may not be true for all of the clientele, there's something about being shoved to the back of a room amid a sea of perfectly sculpted and tanned women with massive diamond rings, clad in SoulCycle's signature apparel, that doesn't make you feel great,” Mallory Schlossberg, a former SoulCycle enthusiast, wrote for Business Insider . The crowd that SoulCycle attracts — paired with the fact that experts are hard-pressed to deem the class entirely safe or effective — has pushed people like Schlossberg away for good. But yet, SoulCycle persists. 

The spread of soul 

After opening two additional locations in New York City and an additional studio in Scarsdale, New York in 2010, SoulCycle was acquired by Equinox in 2011 , which effectively led to studios popping up in well-to-do areas around the U.S., like San Francisco and Greenwich, Connecticut . 

Shortly after, the company released the SoulCycle bike, which was known for its extended handlebars, sturdiness, and bright yellow color . Since then, there have been several iterations of the stationary bike, with design changes to enhance comfort and make for a smoother ride . Like SoulCycle classes, the equipment doesn’t come cheap: a single bike runs upward of $1,600 .

In 2015, SoulCycle announced it would raise $100 million in a public offering with which it would pay down debt and open even more studios. After dragging its feet for three years, the company then announced in 2018 that it would withdraw its IPO request due to “market conditions,” CNN Business reports . The claim was met with skepticism; industry leaders believed it had much to do with competition from up-and-coming indoor cycling brands like Peloton. 

This wouldn’t be the last time SoulCycle felt the burn from Peloton. 

Politics enter the studio

While SoulCycle’s affiliation with Equinox certainly helped the brand expand far and wide (by 2018, the brand made its way overseas and opened studios in Canada and the United Kingdom ) it also resulted in backlash. In 2019, Stephen Ross, a billionaire real estate developer and majority owner of The Related Companies (AKA, Equinox and SoulCycle’s parent company) hosted a fundraiser for President Trump where attendees were charged anywhere from $100,000 to $250,000 for tickets.

On top of leaving a bad taste in customer’s mouths, Ross’s decision to host the fundraiser went against the very mission of SoulCycle, which involves welcoming “all souls” and tolerance .SoulCycle trainers were also shocked to hear of the event; in fact, “ numerous instructors, many of whom identify as LGBTQ and nonwhite, and who are paid to spread a message of positivity and welcomeness, felt frustrated, blindsided, and hurt by the news,” Vox reported . Though then-SoulCycle CEO Melanie Whelan put out a statement on Instagram explaining that the company did not support the event, many trainers and riders alike weren’t satisfied with the response. Thus, a boycott ensued. Loyal riders decided to cut back on tap-backs and stay away from the studios they had come to know and love. 18 days after the fundraiser was announced, data showed that class sign-ups had decreased by nearly 13 percent. 

A missed opportunity 

Cue: 2020, the coronavirus pandemic, and SoulCycle’s late-to-market bike developed in partnership with Variis , a digital platform and fitness app that would allow the company to stream its classes. As the pandemic pushed riders out of the studio and into their homes, they longed for a way to find their souls within their own four walls. And as the release of SoulCycle’s long-awaited at-home bike was pushed later and later, Peloton stepped up to take its place. 

The SoulCycle At-Home Bike was released in early May — six months later than expected, the New York Times reports —  which gave Peloton the perfect opportunity to tap into desperate riders who were more than ready to get back on their bikes. And the data confirms it: not only did Peloton see a 66 percent increase in revenue compared to this time last year, but also a boost in social media followers as SoulCycle’s follower base stayed relatively flat.

It remains to be seen whether the long-standing industry favorite will revive its soul and come out on top, or continue to lose traction to Peloton. While SoulCycle’s at-home bike doesn’t seem to be making its way into as many living rooms as Peloton, the company is beginning to offer private customized classes as well as outdoor classes as a way to keep riders interested and engaged. But not even the pandemic will push the company to give its customers (and their wallets) a break: prices for private instruction start at $1,200 a pop. How SoulCycle of them

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SoulCycle’s CEO on Sustaining Growth in a Faddish Industry

• Melanie Whelan

It’s all about friendship and community.

After hearing from friends that SoulCycle’s very first studio was different from other cycling studios, Whelan decided to give it a try. One visit was all it took for her to appreciate the full sensory experience, the charismatic instructor, and the passion of the client community. A few years later she joined the company, which today operates 74 studios.

SoulCycle doesn’t view itself as a fitness company—it’s a “player in the broader experiential economy.” That’s why it takes a different approach to recruiting and training instructors, with the aim of making them inspirational coaches who empower riders in their lives as well as on their bikes. It doesn’t charge monthly fees, but each class costs $30 to $35, and riders must book bikes in advance, on the theory that the pay-per-class model elicits greater energy and commitment. Choosing the location for a new studio involves a year of research to understand the lifestyle of future customers. Amenities such as iPhone chargers in the lockers have improved studio design. Next-generation bikes are coming in 2017, and the company’s apparel line is expanding. Because SoulCycle has friendships and community at its core, Whelan writes, the brand will endure.

I have a rule: Whenever I hear about something from three people, I need to give it a try. In 2008 I heard about SoulCycle from a few friends. At the time, it was two years old and had just one studio, on the Upper West Side of Manhattan. I was immediately curious. I loved group fitness classes, and I was a consistent runner, but I didn’t Spin. I had tried indoor cycling a few times and hadn’t enjoyed it. My friends promised that this studio was different.

• MW Melanie Whelan is the CEO of SoulCycle.

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Welcome to Navigating Your Course for Success

A success model to think about.

Source: https://www.flickr.com/photos/thenickster/

This article is about a success model to think about. Take the aspects of the story which you feel translate to your business. Believe me there is something in here for everyone.

Have you heard of SoulCycle? These are branded spinning studios where everything is about soul. You can learn more about them here .

First consider the sleek and clean look – white walls, their branded yellow colors on the bikes and other aspects of the studio. Of course the instructors wear black – more or less!

Oh and they are not instructors – they are rock star instructors who guide the riders. The wording does not call the locations spinning studios, instead – indoor cycling  reinvented .

Let me stop here for one moment. Right now you should understand this is no fly by night business. This has been going on for over ten years and the following and demand is increasing not decreasing. Branding is well thought out across the board.

There are a number of class types which are all named Soul something and there is a description. A good amount of space and wording goes into great detail about how to purchase, reserve, wait list, cancel, switch and when traveling book at another location.

An offer is available for a 101 for those who wish to try it out.

Allow me to stop here for a moment. What is happening here is SoulCycle has in essence created their own language and culture. They have intentionally built this in order to form a community. In fact on their web site they have a place for their community to share and hang out. Peer pressure will keep people coming to workout. A community will bring people together for fun, support and a place to feel wanted.

Create relationships with people. Think marketing, branding, environment and culture.

The pricing is displayed right on the web site. The model utilized is buy a series of class units and the more you purchase the lower the cost is to you per class. A time limit is placed with each option. This is the reason a great amount of detail is given to how to reserve a bike, how to wait list, how to cancel and more. The 101 is a low cost item to allow a newbie to sample the goods. Consider for a moment how this type of pricing structure might fit into your business model. There isn’t any small type or hidden secrets.  Everything is out in the open and described in great detail.

In summary, take a look at your business model, read through these examples again, see where a few changes in your branding, marketing and community building might make all the difference in the soul of your business. Would you like to have some help with it?

Contact Mitch Here

Mitch Tublin is a business consultant, coach, trainer and speaker who is based in Stamford, CT.

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SoulCycle: The Road Ahead

By: Ashish Nanda, Eric Van Den Steen, Jeffrey Boyar

Julie Rice and Elizabeth Cutler founded SoulCycle, an indoor cycling studio chain, in 2006 as more than a health club; they wanted it to become a lifestyle brand that would "empower riders in an…

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• Publication Date: Feb 7, 2018
• Discipline: Strategy
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Julie Rice and Elizabeth Cutler founded SoulCycle, an indoor cycling studio chain, in 2006 as more than a health club; they wanted it to become a lifestyle brand that would "empower riders in an immersive fitness experience." By early 2015, SoulCycle had grown to 38 studios in seven metropolitan areas. In March 2015, Equinox, a luxury fitness company that had financed SoulCycle's expansion in 2011, approached the co-founders with an offer to buy them out for $90 million each. It was an attractive offer but it would also likely circumscribe their responsibilities. Rice and Cutler had to decide whether to accept the Equinox offer as a prelude to smaller roles at the firm (even potential exit), or continue investing time, energy, and financial resources in growing the business.

Learning Objectives

Students consider the attractiveness of the boutique fitness market in 2015 and reflect on whether SoulCycle has established a position of competitive advantage in this market, and what might be the sources of advantage. They deliberate whether SoulCycle's success is sustainable, or if it is a "flash in the pan" in a faddish market.

Feb 7, 2018 (Revised: Jan 9, 2020)

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North America

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Recreation and fitness industry

Harvard Business School

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SoulCycle hits the brakes on IPO plan

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Jessica Dye in New York

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SoulCycle, the indoor cycling business that took city fitness buffs by storm, has decided to shelve plans to go public nearly three years after filing an IPO prospectus.

The company said in a regulatory filing with the US Securities and Exchange Commission that it “decided not to pursue the offering due to market conditions.”

SoulCycle, which describes its loud, energetic $34-per-session classes as a “cardio party”, filed initial paperwork for a public offering in July 2015. It did not list the number of shares to be sold nor the price, but its filings indicated that in 2014 its businesses generated $112m in revenue.

SoulCycle has benefited from consumers’ increasing willingness to spend big bucks on gym memberships and boutique fitness classes, particularly in urban areas. However, it is facing fierce competition as more rivals try to muscle into the business and take advantage of the boom.

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International Edition

BrandBusinessBoundless

Indoor Cycling Studio

Explorer brand archetype, fun brand vibe, for access to, soulcycle- business operating model | brand strategy | revenue model - (all sources of income) | growth campaigns that contributed to its popularity | marketing plan | it’s brand archetype & brand vibe and their method of implementation | essential links for reference.

How Much Does It Cost to Launch a Soulcycle Franchise?

By henry sheykin, resources on soulcycle franchisee.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan
• SWOT Analysis
• Business Model
• Marketing Plan

Startup Costs

Introduction.

Welcome to our blog post on the exciting world of SoulCycle franchise opportunities! As the fitness industry continues to boom, it's no surprise that boutique cycling studios like SoulCycle have gained immense popularity. In fact, according to recent statistics, the global fitness and health club industry reached a whopping $96.7 billion in revenue in 2019, and it is projected to grow at a CAGR of 9.3% from 2020 to 2027.

So why exactly is SoulCycle causing such a buzz? Well, it offers a unique blend of invigorating indoor cycling sessions and on-trend athleisure apparel and accessories. This winning combination has captured the hearts of fitness enthusiasts worldwide, making it an attractive business venture for entrepreneurs looking to tap into this thriving market.

In this blog post, we will delve into the startup expenses involved in opening a SoulCycle franchise outlet. From equipment and renovations to marketing campaigns and franchise fees, we'll explore all the essential elements you need to consider to get your SoulCycle outlet up and running successfully. So, if you're eager to jump into the fitness business and provide a captivating retail experience for your customers, keep reading!

Opening a SoulCycle franchise requires significant upfront investment. Here are the estimated startup costs involved in launching a thriving SoulCycle franchise outlet:

Note that these figures are estimates and can vary depending on factors such as location, size of the retail space, and specific requirements set by SoulCycle.

It is important to carefully consider these startup costs and ensure that you have adequate financing in place before embarking on opening a SoulCycle franchise. With proper planning and execution, the investment can lead to a successful and financially rewarding endeavor.

1. Equipment and specialized indoor cycling bikes

When considering the cost of opening a SoulCycle franchise, one of the primary expenses to account for is the purchase of equipment, specifically specialized indoor cycling bikes. The investment required for this essential component can vary depending on a few factors, such as the number of bikes needed and the quality and brand chosen.

On average, the cost per bike ranges from $2,000 to $3,000 , which means that outfitting a studio with 50 bikes would cost between $100,000 to $150,000 . However, it is important to note that this cost can fluctuate based on the specific features, technology, and customization options offered by different manufacturers.

Aside from the basic cost of the bikes themselves, additional expenses should be considered, such as delivery and installation fees. These charges can vary depending on the location of the franchise and any specific requirements or restrictions associated with it. It is advisable to budget an additional $5,000 to $10,000 for these costs.

Furthermore, ongoing maintenance and repair costs should also be factored into the overall budget. It is recommended to establish a maintenance contract with the manufacturer or a specialized service provider to ensure the bikes remain in optimal condition. These contracts typically cover regular servicing, repairs, and replacements of any faulty parts. Monthly costs for such contracts can range from $500 to $1,000 , depending on the number of bikes and the level of service required.

It is worth noting that opting for high-quality, durable indoor cycling bikes is crucial for providing a seamless and enjoyable experience to SoulCycle customers. Moreover, these bikes may also contribute to the overall reputation and brand image of the franchise, attracting and retaining customers.

In summary, the cost of equipment and specialized indoor cycling bikes for opening a SoulCycle franchise can amount to a substantial investment. It is essential to thoroughly research and compare the available options to ensure the chosen bikes align with the franchise's goals, provide an exceptional cycling experience, and offer a solid return on investment.

2. Renovations and interior design of the retail space

Renovating and designing the retail space for your SoulCycle franchise outlet is an essential step towards creating a captivating and visually appealing environment for your customers. A well-designed retail space not only enhances the overall brand experience but also plays a crucial role in attracting and retaining customers. However, it is important to consider the potential costs involved in this process.

Renovation Costs: The expenses associated with renovating the retail space can vary significantly depending on various factors such as the size of the space, location, and the extent of changes required. On average, the cost of renovating a retail space for a boutique fitness studio, like SoulCycle, can range between $50,000 to $150,000. This includes costs for structural modifications, electrical and plumbing work, flooring, painting, signage, lighting, and other essential fixtures.

Interior Design Costs: Creating an aesthetically pleasing and functional interior design is crucial for setting the right ambiance and attracting customers. The cost of interior design for a SoulCycle franchise outlet typically ranges from $20,000 to $50,000. This includes expenses for hiring a professional interior designer, purchasing furniture, fixtures, mirrors, artwork, branding elements, as well as any customizations required to align with the SoulCycle brand identity.

Branding Costs: Along with the renovations and interior design, it is important to factor in the costs associated with branding and marketing the retail space. This includes expenses for signage, window displays, graphics, and other promotional materials. Depending on the scale and complexity of the branding efforts, the costs can range between $5,000 to $15,000 or more.

• For example, consider a SoulCycle franchise outlet located in a prime area with a larger retail space and extensive renovations required. The renovation costs may reach $150,000 or more, while the interior design expenses can be around $50,000. Additionally, branding costs may add up to $15,000, resulting in a total investment of approximately $215,000.
• On the other hand, a smaller retail space with minimal renovations required may have lower costs. For instance, renovation expenses of $50,000, interior design costs of $20,000, and branding costs of $5,000 would amount to a total investment of approximately $75,000.

Keep in mind that these figures are rough estimates and can vary depending on various factors specific to your location and requirements. It is advisable to consult with professionals in the industry and gather detailed quotes to get a more accurate understanding of the costs involved in renovating and designing your SoulCycle franchise outlet's retail space.

3. Initial inventory of athleisure apparel and accessories

Starting a SoulCycle franchise outlet requires a significant investment in the initial inventory of athleisure apparel and accessories to offer customers a trendy and comprehensive retail experience. The cost of the initial inventory can vary depending on factors such as the size of the store, location, and the diversity of the product range.

According to recent statistics, the average cost of the initial inventory for a SoulCycle franchise outlet ranges from $100,000 to $200,000. This cost includes stocking a variety of athleisure apparel items such as leggings, sports bras, tank tops, and hoodies, as well as accessories like water bottles, yoga mats, and workout equipment.

It is important to carefully consider the selection of athleisure apparel and accessories to cater to the preferences and needs of the target market. Offering a range of high-quality and stylish options that align with the SoulCycle brand is essential for attracting and retaining customers.

When determining the initial inventory, franchisees should also take into account the latest industry trends and customer demands. For example, incorporating eco-friendly and sustainable athleisure options, such as using recycled materials or partnering with ethical brands, can appeal to a growing segment of environmentally-conscious consumers.

In addition to athleisure apparel, it is crucial to stock up on a variety of accessories that complement the workout experience . This can include branded merchandise like SoulCycle water bottles, headbands, and tote bags, as well as functional items like yoga mats, resistance bands, and foam rollers. Providing customers with these additional products enhances their overall fitness journey and creates opportunities for additional revenue streams.

Creating partnerships with popular athleisure brands can also add value to the inventory selection. By featuring items from well-known brands like Lululemon, Nike, or Athleta, franchisees can attract customers who actively seek out these trusted names in the fitness industry.

• To sum up, the initial inventory cost for a SoulCycle franchise outlet can range from $100,000 to $200,000 , depending on various factors.
• Franchisees must carefully curate the athleisure apparel and accessories selection to appeal to their target market and align with the SoulCycle brand.
• Incorporating eco-friendly and sustainable options and partnering with popular athleisure brands can enhance the customer experience and drive sales.
• Stocking a variety of accessories that complement the workout experience and provide additional revenue opportunities is also essential.

4. Technology infrastructure and systems for seamless operations

Implementing a robust technology infrastructure is crucial for the seamless operations of a SoulCycle franchise outlet. From booking classes to managing inventory and sales, investing in the right systems ensures smooth functionality and enhances the overall customer experience.

The cost of technology infrastructure and systems can vary depending on the scale and requirements of the franchise outlet. On average, it is recommended to allocate a budget of approximately $20,000 to $30,000 for essential technology investments.

This budget includes the purchase and installation of point-of-sale (POS) systems to manage payments, inventory tracking, and sales reporting. The estimated cost for a reliable POS system ranges from $2,000 to $5,000.

Additionally, franchisees need to consider the expenses associated with customer relationship management (CRM) software to effectively manage client data and track customer interactions. A CRM system can cost around $1,000 to $2,500, depending on the chosen provider.

Furthermore, online booking and scheduling platforms are vital for the convenience of SoulCycle enthusiasts. Investing in a reputable software solution can range from $500 to $1,500, depending on the features and customization options.

Communication systems and network infrastructure are also important considerations for efficient operations. Allocating a budget of approximately $3,000 to $5,000 is advisable for the implementation of a secure and reliable network setup, including Wi-Fi routers, Ethernet cabling, and network switches.

Lastly, security measures and data protection systems play a significant role in safeguarding customer information and ensuring compliance with privacy regulations. Investing in firewalls, antivirus software, and data backup solutions can incur additional costs of around $2,000 to $4,000.

• A POS system for seamless sales tracking and inventory management: $2,000 to $5,000
• A CRM software for effective customer relationship management: $1,000 to $2,500
• An online booking and scheduling platform for convenient class reservations: $500 to $1,500
• Communication systems and network infrastructure for smooth connectivity: $3,000 to $5,000
• Security measures and data protection systems for customer privacy: $2,000 to $4,000

While these estimates provide a general understanding of the costs involved, it is essential for franchisees to consult with technology experts to determine their specific requirements and budget accordingly.

5. Marketing and advertising campaigns to generate brand awareness

Marketing and advertising campaigns are essential for generating brand awareness and attracting customers to a SoulCycle franchise outlet. These campaigns aim to create a strong brand identity and promote the unique retail experience offered by the franchise. However, it is important to consider the costs associated with these campaigns when planning the overall budget.

The costs of marketing and advertising campaigns for a SoulCycle franchise can vary depending on various factors such as the geographical location, target audience, and duration of the campaign. On average, a franchise owner should budget around $5,000 to $10,000 per month for marketing and advertising expenses.

One of the most effective marketing strategies for generating brand awareness is digital advertising, which includes social media ads, search engine marketing, and display advertising. These campaigns can range from $1,000 to $3,000 per month, depending on the level of targeting and the platforms chosen.

In addition to digital advertising, offline marketing activities are also crucial for reaching a wider audience. These may include print advertisements, billboards, radio spots, and local events. The costs for these offline marketing efforts can range from $2,000 to $5,000 per month.

Another important aspect of marketing and advertising for a SoulCycle franchise is influencer marketing. Collaborating with fitness influencers and celebrities can significantly increase brand visibility and attract potential customers. The costs associated with influencer marketing can vary widely depending on the influencer's popularity and engagement rates, with prices ranging from $1,000 to $10,000+ per campaign.

Moreover, it is essential to allocate a portion of the marketing budget for public relations activities. This may include press releases, media interviews, and partnerships with local publications or fitness-related websites. PR costs typically range from $1,000 to $3,000 per month.

• Digital advertising: $1,000 to $3,000 per month
• Offline marketing activities: $2,000 to $5,000 per month
• Influencer marketing: $1,000 to $10,000+ per campaign
• Public relations: $1,000 to $3,000 per month

By investing in effective marketing and advertising campaigns, franchise owners can generate brand awareness, attract customers, and establish a loyal customer base for their SoulCycle franchise outlet.

6. Licensing and franchise fees

When considering opening a SoulCycle franchise, it is important to understand the licensing and franchise fees involved. These costs are necessary to be a part of the SoulCycle brand and to operate under their established business model.

Licensing fees: SoulCycle requires potential franchisees to pay an initial licensing fee, which grants them the right to open and operate a franchise. This fee is currently set at $60,000.

Franchise fees: In addition to the licensing fee, franchisees must also pay an ongoing franchise fee. This fee is a percentage of the franchisee's gross sales and is currently set at 7%.

Ongoing royalties: Along with the franchise fee, franchisees are required to pay ongoing royalties to SoulCycle. These royalties are also calculated as a percentage of the franchisee's gross sales and are set at 5%.

Marketing fees: Franchisees are also responsible for contributing to SoulCycle's marketing efforts. This includes paying into a national advertising fund and contributing to local marketing initiatives. The marketing fees are currently set at 2% of the franchisee's gross sales.

Additional costs: It's important to note that these fees are just the initial costs associated with opening a SoulCycle franchise. Franchisees will also need to consider other expenses such as leasehold improvements, equipment purchases, staffing costs, and ongoing operational expenses.

• Example 1: If a SoulCycle franchisee has gross sales of $500,000 in a year, they would pay $35,000 in franchise fees (7% of $500,000) and $25,000 in royalties (5% of $500,000).
• Example 2: If another franchisee has gross sales of $1,000,000, they would pay $70,000 in franchise fees (7% of $1,000,000) and $50,000 in royalties (5% of $1,000,000). Additionally, they would contribute $20,000 to the marketing fund (2% of $1,000,000).

These costs can vary depending on a variety of factors, including the location and size of the franchise outlet, as well as the overall performance of the business. It is important for potential franchisees to carefully consider these fees and their financial implications before committing to opening a SoulCycle franchise.

7. Training and certification programs for instructors

Training and certification programs for instructors are essential to maintain the high standard of fitness expertise that SoulCycle is known for. These programs provide instructors with the necessary knowledge and skills to lead engaging and effective cycling classes.

Enrolling in a training program typically incurs a cost, which can vary depending on the location and specific program chosen. On average, the cost of a training program can range from $1,000 to $2,500. This fee covers the comprehensive training curriculum, mentorship from experienced instructors, and evaluation to ensure instructors meet SoulCycle's standards.

Additional costs may arise for instructors who need to travel to attend training programs. This includes expenses such as transportation, accommodation, and meals. It's important to factor in these additional costs when considering the overall investment required to become a SoulCycle instructor.

Furthermore, certification renewal is required every two years to maintain an active instructor status . The cost for certification renewal is typically around $250 to $500. This fee covers updates on industry trends, new teaching techniques, and continuing education to ensure instructors stay up-to-date and deliver the best experience to their clients.

SoulCycle also offers additional specialized training programs for instructors who wish to expand their skills and certification. These programs, such as advanced cycling techniques or specialty classes, may have additional fees ranging from $500 to $1,000. These programs provide instructors with the opportunity to refine their expertise and offer unique classes to attract a diverse range of clients.

• Instructor training program cost: $1,000 to $2,500
• Travel expenses for training programs
• Certification renewal cost: $250 to $500 every two years
• Specialized training program cost: $500 to $1,000

Becoming a SoulCycle instructor requires a significant financial investment in training and certification. However, the benefits of acquiring the necessary skills and expertise can lead to a fulfilling career and the opportunity to positively impact the lives of fitness enthusiasts.

8. Professional Services such as Legal and Accounting Fees

When opening a SoulCycle franchise, it is crucial to seek professional services to handle legal and accounting matters. These services are essential for ensuring compliance with regulations and maintaining financial transparency. While the specific costs may vary depending on various factors, including location and complexity of your business structure, it is useful to consider the latest statistical information regarding the costs of these professional services.

Legal Fees: As per industry research, the average legal fees for setting up a franchise range from $5,000 to $10,000. These costs typically cover tasks such as drafting and reviewing contracts, obtaining necessary permits and licenses, and ensuring compliance with franchise laws and regulations. However, please note that the actual costs can vary significantly based on the complexity of your franchise agreement and the legal services you require.

Accounting Fees: Hiring an experienced accountant to handle your financial records and taxes is essential for the smooth operation of your SoulCycle franchise. On average, accounting fees for a franchise can range from $1,000 to $5,000 per year. These costs typically cover services such as bookkeeping, tax return preparation, financial statement analysis, and advice on managing your franchise's financial health. However, it is essential to note that the fees may increase based on the scale and complexity of your franchise's financial operations.

Additional Considerations: It is important to remember that the costs mentioned above are estimated averages and can vary depending on your specific circumstances. Factors such as the location of your franchise, the size of your operation, and the time and effort required from legal and accounting professionals can influence the actual costs you may incur.

In addition to the initial setup costs, ongoing legal and accounting fees should also be considered as part of your budget. Some franchisors may require franchisees to contribute to a national or regional advertising fund or pay ongoing fees for support services provided by the franchisor. These fees can vary but typically range from 2% to 5% of your gross sales.

While these professional services add to the initial investment required to open a SoulCycle franchise, they are essential for establishing a solid foundation and ensuring compliance with legal and financial obligations. Seeking assistance from qualified professionals can help mitigate potential risks and set your franchise up for long-term success.

9. Initial lease or purchase of retail space

When considering opening a SoulCycle franchise, one of the key expenses to factor in is the cost of leasing or purchasing retail space. The price of retail space can vary significantly depending on the location, size, and demand of the area.

In major cities such as New York or Los Angeles, the cost of leasing retail space can range from $50 to $200 per square foot annually. This means that for a 2,000 square foot space, the yearly lease cost can be anywhere between $100,000 and $400,000. These high rental prices are reflective of the prime locations where SoulCycle outlets thrive and attract a large customer base.

Leasing a retail space typically requires a security deposit, which can be equivalent to a few months' rent. For instance, if the monthly rent is $10,000, the security deposit could amount to $20,000 to $30,000. This deposit acts as a form of insurance for the landlord, protecting them against any potential damages or missed rental payments.

In certain cases, purchasing retail space may be a more feasible long-term investment option. However, it can come with a much higher upfront cost compared to leasing. The cost of purchasing retail space varies greatly depending on the location and size of the property, but it can range from hundreds of thousands to millions of dollars.

An important aspect to consider when purchasing retail space is the additional expenses associated with ownership, such as property taxes, maintenance, and insurance. These ongoing costs must be factored into the overall budget and business plan to ensure financial sustainability.

It is crucial to carefully evaluate the location and potential foot traffic when selecting a retail space for a SoulCycle franchise outlet. Proximity to other fitness facilities, trendy shopping districts, and affluent neighborhoods can greatly impact the success of the business. Conducting thorough market research and seeking professional guidance can help determine the best location for maximum profitability.

• Example: In downtown Manhattan, leasing a 2,500 square foot retail space for a SoulCycle franchise outlet could cost approximately $200,000 per year. This includes the estimated rent of $80 per square foot annually.
• Example: In Beverly Hills, California, purchasing a 3,000 square foot retail space could cost around $2 million. This investment includes the acquisition of a prime location near high-end shopping centers.

Opening a SoulCycle franchise outlet requires careful planning and investment, but the potential for success in the thriving fitness industry is significant. The startup expenses involved in launching a SoulCycle franchise include equipment and specialized indoor cycling bikes, renovations and interior design of the retail space, initial inventory of athleisure apparel and accessories, technology infrastructure and systems for seamless operations, marketing and advertising campaigns for brand awareness, licensing and franchise fees, training and certification programs for instructors, professional services such as legal and accounting fees, and the initial lease or purchase of retail space.

It's important to note that the cost of opening a SoulCycle franchise can vary depending on factors such as location, size of the retail space, and market conditions. However, based on industry standards and estimates, entrepreneurs should budget for an initial investment of approximately $2 million to $3 million for a successful SoulCycle franchise outlet.

While the upfront costs may seem daunting, the potential for profitability and growth in the fitness industry, combined with the unique retail experience that SoulCycle offers, make it an enticing business opportunity. With a growing demand for boutique cycling studios and trendy athleisure products, entrepreneurs have the chance to tap into a lucrative market and provide a captivating experience for fitness enthusiasts.

In conclusion, if you have the passion and resources to invest in a SoulCycle franchise outlet, the potential rewards are significant. By carefully considering and budgeting for the startup expenses mentioned in this blog post, you can pave the way for a successful and thriving SoulCycle franchise business.

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Press Releases

Siriusxm and soulcycle team up to launch 'soulcycle radio', bring the sound of soulcycle to wherever you are, new channel will feature inspiring music curated by soulcycle's most influential instructors, mark ronson to headline kick-off sound by soulcycle concert in august in nyc, exclusive soulcycle playlists also to be featured on pandora.

NEW YORK, June 18, 2019 /PRNewswire/ -- SoulCycle, the leading lifestyle brand redefining health and happiness, has teamed up with SiriusXM for the launch of an exclusive fulltime SoulCycle music channel featuring the inspiring, motivating, and transformative music heard in their famed studios.

"At SoulCycle, music is what connects us, moves us, and inspires us," said Melanie Whelan, CEO of SoulCycle. "With SoulCycle Radio on SiriusXM, we can reach our riders wherever they are in their day-to-day lives, as well as reach people who may not have yet experienced the motivational magic that is SoulCycle."

"Launching SoulCycle Radio on SiriusXM will bring our music to an audience of millions and is a natural way to feature our instructors, their creativity and their relationships with artists," said Gregory Gittrich, Chief Commercial Officer of SoulCycle. "Our listeners — both our existing community and newcomers — will feel joyful, motivated, and inspired to take on the world."

SiriusXM subscribers will be able to listen on SiriusXM radios, and those with streaming access can listen online, on-the-go with the SiriusXM mobile app and at home on a wide variety of connected devices including smart TVs, Amazon Alexa devices, Apple TV, PlayStation, Roku, Sonos speakers, and more. Go to  www.SiriusXM.com/streaming  to learn more.

About SoulCycle

The SoulCycle Experience:   SoulCycle is the leading lifestyle brand redefining health and happiness through unique mind-body-soul experiences. More than 20,000 riders take SoulCycle classes every day to ride through struggles, strengthen their bodies, empower their minds and find joy in movement to become the best version of themselves. SoulCycle was founded on a few simple ideas: That fitness could be a physical, musical and inspirational experience, and one that you look forward to. With transformative class offerings, a devoted and loyal community, world-class, one-of-a-kind instructors, and unparalleled hospitality within our studios, SoulCycle serves an important purpose: move people to move the world.

SoulCycle transformed boutique fitness with the launch of its signature indoor cycling class in New York City in 2006, and has since continued to innovate and grow for its community. There are currently more than 90 studios across North America, Canada and internationally in the UK. In addition to offering a one-of-a-kind fitness experience, studios are popular retail destinations, and the brand recently launched its first proprietary apparel collection, Soul by SoulCycle. In 2018, SoulCycle introduced a media division that transcends studio walls and brings the SoulCycle experience to a global audience through music, digital programming and experiential events.

About SiriusXM

Sirius XM Holdings Inc. (NASDAQ: SIRI) is the world's largest audio entertainment company, and the premier programmer and platform for subscription- and advertising-supported audio products. With the recent addition of Pandora, the largest streaming music provider in the U.S., SiriusXM reaches more than 100 million people with its audio products. For more about the new SiriusXM, please go to: www.siriusxm.com .

This communication contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about future financial and operating results, our plans, objectives, expectations and intentions with respect to future operations, products and services; and other statements identified by words such as "will likely result," "are expected to," "will continue," "is anticipated," "estimated," "believe," "intend," "plan," "projection," "outlook" or words of similar meaning. Such forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally beyond our control. Actual results and the timing of events may differ materially from the results anticipated in these forward-looking statements.

The following factors, among others, could cause actual results and the timing of events to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: our substantial competition, which is likely to increase over time; our ability to attract or increase the number of subscribers, which is uncertain; our ability to profitably attract and retain more price-sensitive consumers; failure to protect the security of personal information about our customers; interference to our service from wireless operations; a decline in the effectiveness of our extensive marketing efforts; consumer protection laws and their enforcement; our failure to realize benefits of acquisitions or other strategic initiatives, including the acquisition of Pandora Media, Inc.; unfavorable outcomes of pending or future litigation; the market for music rights, which is changing and subject to uncertainties; our dependence upon the auto industry; general economic conditions; existing or future government laws and regulations could harm our business; failure of our satellites would significantly damage our business; the interruption or failure of our information technology and communications systems; rapid technological and industry changes; failure of third parties to perform; our failure to comply with FCC requirements; modifications to our business plan; our indebtedness; damage to our studios, networks or other facilities as a result of terrorism or natural catastrophes; our principal stockholder has significant influence over our affairs and over actions requiring stockholder approval and its interests may differ from interests of other holders of our common stock; impairment of our business by third-party intellectual property rights; and changes to our dividend policies which could occur at any time. Additional factors that could cause our results to differ materially from those described in the forward-looking statements can be found in our Annual Report on Form 10-K for the year ended December 31, 2018, which is filed with the Securities and Exchange Commission (the "SEC") and available at the SEC's Internet site ( http://www.sec.gov ). The information set forth herein speaks only as of the date hereof, and we disclaim any intention or obligation to update any forward looking statements as a result of developments occurring after the date of this communication.

Source: SiriusXM

Media contacts: Amy Galleazzi 212.901.6552 [email protected]

Kimberly Gibbs 646-632-3263 [email protected]

SOURCE Sirius XM Holdings Inc.

Released June 18, 2019

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Use your HSA/FSA dollars to ride with the help of Dr. B

SoulCycle and Dr. B, a telehealth platform making access to healthcare more efficient and equitable, are coming together to help our collective communities strengthen their health and fitness goals.

*The “Dr. B Welcome Offer” Limited Time Offer (the “Offer”) entitles you to receive 20% off a purchase of a New Rider 1 Class series, Starter 3 Class series, or Starter Unlimited Classes series. Available to new riders only (i.e., those who have never ridden with SoulCycle before or have less than 2 lifetime rides). You may redeem this Offer, by creating a SoulCycle account and purchasing via the SoulCycle app or on soul-cycle.com, between January 30, 2024 and February 13, 2024 (the “Offer Period”). In order to redeem the discount code, you must be a new rider (i.e. have never taken a SoulCycle class before), must create a SoulCycle account, and must redeem the discount code sent to the email address associated with your Dr. B account.

For New rider 1 class series or Starter 3 class series, if you book your class in advance but are unable to attend, you must unreserve by 5 PM the night prior to the class. Once your reservation is canceled, the class will be returned to your account to be used at a future date. If you haven’t canceled by 5 PM the night before, your scheduled class will be forfeited from your account whether you attend the class or not. All classes received through the Offer applied to 'New Rider' 1 Class series or 'Starter' 3 Class series must be used within thirty (30) days from the date of receipt and any unused classes will expire and be forfeited. You may cancel your purchase at any time before midnight of the fifth business day after the date of your purchase per our “Consumer’s Right to Cancellation.”  We will then refund the purchase price of your unused classes within ten (10) days after we receive your notice of cancellation, provided, however, that the refund will not include the value of the one (1) complimentary class.

Starter Unlimited' Classes series are available to new riders only (i.e., those who have never ridden with SoulCycle before or have less than 2 lifetime rides). New riders will have access to all in-studio SoulCycle classes, limited to one (1) ride/class per day per new rider. Starter 2 Week Unlimited Pack expires fourteen (14) days after date of purchase; unused classes will not roll over and cannot be extended. Rides may not be shared with any other person. Your two-week unlimited ride period begins the day you purchase an unlimited ride package. Persons who purchase ANY Unlimited Series (such as but not limited to SoulCycle Starter Unlimited Classes) are subjected to a penalty charge ($15 for all US studios, £10 for all UK studios) for either a late cancel or an absence should they not cancel their reservation before 5pm local time the day prior to class. You may cancel your two-week unlimited ride purchase pursuant to SoulCycle, LLC’s Terms & Conditions that govern the purchase of SOUL classes but no cancellations may be made once you have taken three (3) paid rides within your two-week period, except that Georgia riders may cancel within seven (7) days and Pennsylvania riders may cancel within ten (10) days. All other SoulCycle, LLC’s Terms & Conditions apply. If you cancel, SoulCycle will refund your purchase price on a pro-rated basis based on the days remaining in your fourteen-day period upon receipt of your notice of cancellation. After your two-week unlimited ride period ends, you may register  here  to continue riding and regular pricing will apply. A new rider is under no obligation to purchase additional classes after a two-week unlimited ride period ends.

This Offer is not valid in combination with other discounts, coupons or offers and not applicable to prior purchases. One Offer redemption per rider during the Offer Period. Offer is subject to change without notice. SoulCycle reserves the right to cancel any order due to unauthorized, altered, or ineligible use of Offer and to modify or cancel these promotions due to system error or unforeseen problems. SoulCycle reserves the right to verify your eligibility as a new rider. Your purchase is subject to and governed by SoulCycle’s Terms and Conditions and Privacy Policy, which we urge you to review and print out by clicking  HERE . Question on returns? Check out our FAQ page  HERE .

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