“Despite these changes, we are incredibly bullish about the future of the company,” Hydrow CEO Bruce Smith said in a statement to Globe. “We are bent on this moment to achieve profitability while continuing to offer even more exciting new services to our current and future members.”
In July, Hydrow laid off 35% of its then 200 employees, or about 70 people. Around the same time, other fitness startups such as New York City-based Peloton and San Francisco-based Tonal also made cutbacks as the industry adapted to slowing demand for at-home workouts due to the pandemic.
Hydrow’s challenges seem to continue. Teams are downsizing and product prices are rising.
Last summer, Hydrow released a cheaper rowing machine to expand its customer base. The new model cost him $1,000 less than the company’s original machine and was designed to fit better in tight spaces. Hydrow has since increased the price of that model from his $1,495 to $1,895.
Hydrow’s membership prices have also increased since the summer, from $38 to $44. This is the same price as Peloton’s ‘All Access’ membership. (Hydrow customers can purchase machines without memberships, but the company markets memberships as an “integral part” of the experience that “should not be considered an optional part of the purchase.” )
It’s unclear whether renewed competition from Peloton was a factor in Hydrow’s recent layoffs. In his interview with BostInno in September, Smith said he welcomes newcomers, adding that he has “great news” about a fundraising that he will disclose in the coming weeks.
Hydrow has raised nearly $21 million in funding after initial layoffs, according to documents filed with the Securities and Exchange Commission in August. Then, in December, that paperwork was amended to show that the company had raised his $32 million. Privately held companies do not share information about earnings or profit and loss.
Anissa Gardizy can be reached at anissa.gardizy@globe.com. follow her on her twitter @anissagardizy8 and on Instagram @anissagardizy.journalism.
