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  1. #1
    I just wanna go fast...
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    Strava- how do they even make money?

    This topic came up with some of my buddies last night. I realized that other than people who upgrade to their premium version it doesn't seem like Strava has any other source of income. That can't be right, can it?

    Most people I know just use the free version, what else does strava do for cash? Sell the ride data out to ad companies?

  2. #2
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    They lose money on every customer but make it up on volume.

  3. #3
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    If I am not mistaken, Strava was created by Midpen to better monitor illegal activity. They make their money in tickets and KOM chasing Heli-rides.
    Peanut butter Tuesday, if you know what I mean!

  4. #4
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    With Strava, it's not about money. It's about taking your soul.

  5. #5
    Lusus Naturae
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    I'd say its making money on the subscriptions. Most of the folks I know who are motivated by fitness or racing or any kind of competition will upgrade to the premium, including myself. That being said, who knows when Ads will show up?

  6. #6
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    They'll make their money when somebody buys it, like most .com's.

  7. #7
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    Like most new businesses, they got money from the three F's.

    Friends
    Family
    Fools

    Looks like they have a lot of VC fundage...
    :wq

  8. #8
    Junior flyer
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    Quote Originally Posted by squashyo View Post
    If I am not mistaken, Strava was created by Midpen to better monitor illegal activity. They make their money in tickets and KOM chasing Heli-rides.
    I lol-ed!

    Actually, Strava makes their money by having people sell their souls for KOM's.

    (although I couldn't even get a down payment for a QOM with my raggedy soul)
    Why?

    Because we like the taste of freedom; because we like the smell of danger. ~ E. Abbey

  9. #9
    Dropshot Champ!
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    Quote Originally Posted by NoBalance View Post
    I'd say its making money on the subscriptions. Most of the folks I know who are motivated by fitness or racing or any kind of competition will upgrade to the premium, including myself. That being said, who knows when Ads will show up?
    this. somewhat.

    Most of the people I know use it as a free app, but some of the racerboy types pay

  10. #10
    more skier than biker
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    Quote Originally Posted by redmr2_man View Post
    this. somewhat.

    Most of the people I know use it as a free app, but some of the racerboy types pay
    TONS of roadies subscribe to it also...nearly every road guy that I know has a premium subscription.

    I subscribe to it, but I suppose fall into the "racerboy" bucket

  11. #11
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    Quote Originally Posted by Tyrone Shoelaces View Post
    TONS of roadies subscribe to it also...nearly every road guy that I know has a premium subscription.

    I subscribe to it, but I suppose fall into the "racerboy" bucket
    I'm far from a "racerboy" but I subscribe. Honestly I don't even use the features that come with the sub (at least I don't think I do, I don't really know what they are). I really, really like the service though, and figured that my $6/mo was worth supporting it if it keeps it around.
    :wq

  12. #12
    rox
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    they make a lot from the challenges

  13. #13
    aka baycat
    Reputation: Ryan G.'s Avatar
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    They are a bubble factory, like some other companies. Just hope they don't pop.

  14. #14
    I just wanna go fast...
    Reputation: bdamschen's Avatar
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    Quote Originally Posted by rox View Post
    they make a lot from the challenges
    ?? how so? They charge to enter the challenge? I've never tried one.

  15. #15
    Wēk Ss
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    Quote Originally Posted by bdamschen View Post
    ?? how so? They charge to enter the challenge? I've never tried one.
    Probably sponsorship. i don't know if there are ads, I block all ads. The minute I see an add, I block it and the frame that put it up.

  16. #16
    遅すぎ
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    Quote Originally Posted by cohenfive View Post
    They lose money on every customer but make it up on volume.
    LOLOL haven't heard this since dotcom 1.0 in the late 90s. Good times.

  17. #17
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    Quote Originally Posted by dirtvert View Post
    I lol-ed!

    Actually, Strava makes their money by having people sell their souls for KOM's.

    (although I couldn't even get a down payment for a QOM with my raggedy soul)
    So that's why only premium members have KOMs. I did hear they take 5% off your time on any given segment if you are a premium member.

    If any non premium guy beats his buddy on a segment who is premium, they just say, "GPS device error"










    '
    Lead by my Lefty............... right down the trail, no brakes.

  18. #18
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    Quote Originally Posted by IAmHolland View Post
    Probably sponsorship. i don't know if there are ads, I block all ads. The minute I see an add, I block it and the frame that put it up.
    You may want to rethink this at somepoint as google and other ad companies are way better at getting ads that matter to you showing.

    It's still not perfect, and you may not want that Shimano XT crankset that pops up in the ad, but it's better than getting ads for diapers
    Lead by my Lefty............... right down the trail, no brakes.

  19. #19
    Old,slow,still havin fun.
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    Quote Originally Posted by bdamschen View Post
    ?? how so? They charge to enter the challenge? I've never tried one.
    Some challenges are sponsored by corporations (Specialized, Rapha, Quarq, Road ID), who no doubt pay for the privilege.

  20. #20
    > /dev/null 2&>1
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    Re: Strava- how do they even make money?

    Agree with ziscwg, many ads are getting very personalized and very good, i have found some of the best deals in ads on mtbr or other sites that are part of ad networks that have clients like comp cyclist or Mikes bikes.

    Strava is probably still in startup mode where its more about subscribers than money. I'm sure more monetization schemes will come later.
    ------------------------------------------------
    They're justified and they're ancient and they like to roam the land

  21. #21
    Give it a crank
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    With all the media attention they get, they'll be making money sooner or later if they aren't already able to cover their costs.

    Just look at all the data they collect and you can see a stockpile of sporting data with enormous potential opportunities in the future. The mountain of data could be worth a lot of money.

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