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KFit exits Australian market
Exclusive: Mobile fitness-sharing platform KFit is to exit the Australian market from the end of October, looking to focus its operations in South East Asia and Hong Kong.
Launched in April last year, the Malaysian-based venture entered the Australian and New Zealand market in October 2015 when it merged with two Australian competitors, Classhopper and SweatPass.
Securing a US$12 million investment to drive expansion earlier this year, the gym use pass platform has apparently struggled to make major inroads in the local market – largely as a result of local clubs and gym/studio owners not favouring a model where they did not have access to the data of KFit users.
In addition, in April this year KFit made a dramatic change to its terms and conditions, moving from giving members unlimited access to fitness activities to offering just 10 monthly passes to fitness activities.
Advising participating clubs of its exit from the Australian market in an email yesterday (22nd September), KFit’s Kuala Lumpur head office wrote “it saddens us to inform you that KFit will no longer be maintaining operations in Australia.
“Starting 1st November 2016, KFit will cease to operate in Australia.
“Payments for September and October bookings will be processed as usual and you will receive it by 15th of the next month.
“We would greatly appreciate if you would continue extending the same quality of service to KFit users from now till 31st October 2016. After this date, you will no longer receive reservations from KFit.
“KFit will continue to operate in South East Asia & Hong Kong so our paths might cross again someday.”
In its first nine months of operations in 2015, KFit reserved 250,000 fitness activities across 4,500 gyms and fitness studios in the Asia Pacific region, offering users over 75,000 activities to choose from every week.
In June, KFit diversified its business with the acquisition of Groupon’s Indonesian operations.
Australasian Leisure Management has contacted KFit for comment.
9th June 2016 - KFIT ACQUIRES GROUPON’S INDONESIAN OPERATIONS
28th April 2016 - NEW KFIT SUBSCRIPTION PLAN REDUCES SUBSCRIBER GYM ACCESS
20th February 2016 - KFIT EXPANSION TO BE BACKED BY US$12 MILLION FUNDING
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