Fitness industry pricing startup Dibs Technology nabs $1 mln seed

New York-based Dibs Technology, a fitness industry pricing startup, has secured $1 million in seed funding. Gree Ventures led the round with participation from other investors that included Comcast Ventures’ Catalyst Fund, Caerus and Dreamit Ventures.

PRESS RELEASE

New York, NY – January 5, 2016

New York startup Dibs Technology Inc. raised $1 million in seed funding to bring dynamic-pricing technology to the fitness industry, according to co-founder and Chief Executive Alicia Thomas.

The air travel, hotel, entertainment industries have already effectively employed dynamic pricing for years. In 2012, Major League Baseball began to employ dynamic pricing in ticket sales, resulting in topline revenue increases of over 30 percent.

“Historically, the fitness industry had little need for this pricing strategy or technology because gyms used to generate the bulk of their revenue from memberships. But in recent years, consumer preferences shifted away from high-commitment memberships toward a la carte classes whether they are boxing, spinning, crossfit, yoga or Pilates” stated Ms. Thomas.

Recognizing the a la carte trend, Dibs, co-founded by Ms. Thomas and Jina Wye, offers technology that gives fitness studios the ability to dynamically price their class offerings.

Dibs’ proprietary algorithm analyzes available inventory, historical purchase patterns, and booking velocity to price based on real-time demand. The data-driven approach helps companies understand which inventory is most and least in demand by their customers, and charge accordingly. “Studios set the min and max prices they are willing to offer on classes, and our algorithm does the rest of the works” Ms. Thomas said.

The user gets the best rate available, while the studio maximizes revenue potential for unfilled seats.

Dibs’ seed round was led by Gree Ventures, the investing arm of the mobile games company, and joined by Comcast Ventures’ Catalyst Fund, Caerus, and Dreamit Ventures, along with individuals.

Founded in June 2015 by Alicia Thomas and Jina Wye, Dibs Technology, Inc. is a dynamic pricing technology platform, empowering brands with the ability to maximize revenue without having to resort to blunt discounting, while giving users the best available rate.