With 100 million people, a 4.8-star rating (iOS) and a huge 8 billion activities posted, it is no surprise that Strava is one of the most popular fitness apps in the world.
They even have a Language Network Effect with the verb ‘To Strava’:
Hey, did you Strava it?
And, as the saying goes:
If it’s not on Strava, it didn’t happen.
They also have a super strong Data Network Effect whereby years worth of activity data, photos, progress charts are stored in the app, thereby retaining users as they’re locked in, creating a defensible moat for the business.
Currently rated #21 in Health & Fitness in the app store, Strava started as an app for cycling fanatics back in 2009.
Since then, its raised $151.9M, the latest round being a $110M series F in 2020 where the startup was valued at $1.5 billion. The team is currently around 500 and they’re growing: with seven roles open across the US and Europe (as of Sept 13th 2023), after some layoffs late last year.
But…what I am really interested in is monetisation.
How does an app in such a crowded space monetise and stay competitive? How do they drive premium subscribers with so many similar features to apps like All Trails, MapMyRide, Komoot & more?
Let’s dive into the history of Strava’s monetisation, pricing changes and their post purchase UX flow.
Despite its popularity, it has been a bumpy ride for Strava and their app monetisation.
Strava started out as largely freemium, before realising that some features are just too costly to run.
In 2020, they locked two big, popular features Leaderboards and Routes, putting them into the premium offering.