Last month, cancel culture came for SoulCycle.
The stationary bike exercise company’s liberal user base was outraged at news that one of SoulCycle’smajor investors was hosting a reelection fundraiser for President Trump, whosemisogynistic,racistandanti -gay policiesand rhetoric seem to contradictSoulCycle’s purported socially conscious values . Devotees (includinghigh-profile oneslike Chrissy Teigen, Billy Eichner, and our ownKara Swisher) pledged to boycott SoulCycle and its parent company Equinox.Anecdotal evidence(including atrending hashtagon Twitter) suggested that SoulCycle customers – most of whom are located inlarge coastal cities– were staying away en masse.
One month later, we have data that shows the hullabaloo was more than just Twitter chatter.
everyone who cancels their equinox and soul cycle memberships, meet me at the library. bring weights
– christine teigen (@chrissyteigen)August 7, 2019
In the weeks following the August 7 news about the fundraiser, boycott calls appear to have worked, according to new data fromEarnest Research, a company that analyzed publicly available website data. During the week that ended on Sunday, August 11, which includes dates both before and after the news, SoulCycle attendance declined about 1 percent compared with the same week a year earlier. That’s been followed with consistent declines of 6 percent to 7.5 percent in subsequent weeks. The data only includes SoulCycle locations across the US that were open last year, in order to be able to make the comparison.
Additional data, which Earnest blogged about last month,shows an even larger declinefrom earlier in August 2019, though it says some of that is related to seasonal attendance trends.
Looking at the first quarter of 2019, attendance had been up about 1 percent compared to Q1 2018, according to Earnest.
SoulCycle declined to comment on the data or how the boycott has affected its sales. It has tried to distance itself from investor Stephen Ross’s Trump fundraiser,posting on its Instagramthat “SoulCycle in no way endorses the political fundraising event being held later this week.” The company also said Ross was a “passive investor” who isn’t involved in SoulCycle management. The billionaire real estate developer owns a private investment firm that invests in anumber of progressive-seeming brandslike SoulCycle and Equinox. For this story we looked only at SoulCycle.
SoulCyclers pay per class or can buy multiple class passes, and are required to sign up online or through an app beforehand. Earnest says their online method has visibility into nearly all US attendance.
“We think we’re getting near-perfect clarity into the attendance of each individual class, ”Earnest’s lead data scientist Ried Niziak told Recode.
But a political flap isn’t the only thing affecting SoulCycle’s business .
SoulCycle, which hashalted plans to go public, faces intense competition from thesoon-to-be-public Peloton, a business that focuses on selling bikes as well as streaming class subscriptions so customers can work out at home. Peloton is part of a new spate of companies that produce at-home exercise and streaming media machines thatpsychologists believecould be more successful at keeping users working out than regular gym memberships.
Recodereported in 2018that Peloton, founded six years after SoulCycle, had pulled ahead as far as customers. Flywheel, another in-studio bike competitor, isclosing a quarter of its locationsas it struggles to compete with in-home companies like Peloton.
In an attempt to keep up, SoulCycleannounced an at-home version of its classes last month– thesame day the news of Ross’s Trump fundraiser broke. (The service won’t actually launch until this fall, so it shouldn’t have caused the decline in studio attendance.)
Peloton, ********************************************** which is expected to be valued at more than $ 8 billion, said in its public offering filings that the number of people with subscriptions more than doubled since last year and that their workouts per month have increased.
Peloton’s IPO could be an easier ride thanks to the boycott of its competition.