SoulCycle is preparing to go public with an IPO later this year.
Indoor cycling fitness chain SoulCycle Holdings LLC has hired investment banks for a U.S. initial public offering expected to come later this year, according to people familiar with the matter.
SoulCycle's IPO preparations underscore the growing popularity of boutique chains that cater to specific workout methods such as spinning, yoga and barre. The chains, which often charge per class rather than a monthly membership fee, have been taking market share from traditional big-box gyms.
SoulCycle has more than 42 U.S. locations, and plans to open 50 to 60 studios worldwide by next year, according to its website.
So would you purchase shares in SoulCycle?
After watching SoulCycle for years and seeing what a money machine they've become, I'm thinking I will. In fact I'm going to compare them to Starbucks and predict that SoulCycle will make investors a lot of money for the same reason Starbucks has been such a solid investment* > both their customers admit to being addicted to their products.
A few weeks ago, while mindlessly trolling Instagram, something stopped me in my tracks: My friend from high school, Michaela Miller, who is currently working on a master's degree in public administration from NYU, had screenshot her upcoming SoulCycle schedule. “475 rides in 365,” she boasted of her “SOULiversary,” the birthday of her inaugural class. “Stepping it up with an even STRONGER starting lineup.” After gawking at the fact that she was planning a Wednesday triple—as in three, 45-minute classes in a single day—I shamelessly pulled up my calculator app. Some quick math revealed that my friend's dedication to cult-loved $34 spin sessions (before the price of shoe rentals and water) could easily run her $16,000 in a single year.
Despite all the negativeness directed at SoulCycle, they have shown the rest of the Indoor Cycling industry how to be successful. Not to mention positively changing the lives of thousands of participants…
For Miller, the benefits of being die-hard include daily clear-headedness, a built-in support system, and being held accountable. “I'm definitely less flaky as a person,” she says of committing to ten or more classes a week all over Manhattan, New Jersey, and Brooklyn. “I used to be notorious for missing trains, planes, parties, dinners, but since I started doing Soul, I'm early to things. I show up on time. It sounds silly, because we all should do that, but I was late a lot.” To minimize the financial impact (she says she's only on the hook for half of the classes she takes), Miller buys packages and nabs free rides via a group of instructors who now make up her inner circle. She even gave up a pack-a-day habit. “I would never have quit smoking if it wasn't for Soul,” she says with a laugh. “It was between SoulCycle and the cigarettes.”
NOTE: This is not intended as financial advice, only to alert you to this future opportunity.
John is a member on the AFS (Association of Fitness Studios) Advisory Council.
Holding certifications from; Schwinn, Heart Zones, Team ICG and Life Time Fitness, John's held regularly scheduled cycling classes between 1998 and 2015 when he moved to Florida.
When the weather permits, you'll find him riding and leading outdoor groups by himself or with his Tandem partner (wife) Amy.
Latest posts by John (see all)
- ICI Podcast 13 Conquering Instructor Burnout - March 14, 2019
- ICI Podcast 12 Bike O Vision DVDs for your Indoor Cycling Class - March 13, 2019
- ICI Podcast 11 Fraser Quelch on getting your class connected - March 12, 2019