Stay-at-home life has put fitness at the forefront of the consumer mind. This week’s startup provides a unique way to stay fit.
⚾ The Elevator Pitch:
Cadoo provides a unique way for friends to stay fit. Users pay to join fitness challenges, and the finishers earn back their money and entry fees of those who didn't finish. To play, users must join a challenge and put a ‘deposit’ to complete. Next, users track their progress through apps like Strava, Fitbit, iOS Health, and more. Finally, users get paid once they’ve completed the challenge, with Cadoo taking a 20% cut.
👇 The Drop Down
Tech trend: Fitness
Traction: Product hunt launch, 4k+ users, 55% user growth per month
Team - Yalies with a passion for fitness
Colm Hayden - CEO
Tim Parsa - CCO
Daniel Avila - COO
- 🏃♂️ It works!
Cadoo users reference the app as a great way to make money from friends and keep accountable to goals. One quote from their product hunt reads, “I love Cadoo! Joining challenges with my friends is so much fun. There's no better way to get competitive than when our money is on the line. 😂”
- 💰 Consumer is hard
While Cadoo has been growing successfully, the earning potential can be quite small for users. As such, users may not be burning to use the app in the same way as a DoorDash driver whose salary depends on it will. Additionally, dishing out bigger dollar ‘deposits’ - higher earnings and higher losses - starts to enter the cash range of other substitutes, like a gym membership or trainer.
- 📈 Opportunities for growth
Cadoo mentions piloting with a mid-sized business. Corporate fitness programs are becoming more pervasive and can be game-changing for the business model.