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Business Operations Business Models

How Does Strava Make Money (Business and Revenue Model)

The Strava business model

Strava logo
Here’s what you should know:
  • What is Strava, and how does Strava work?
  • How does Strava make money?
  • Subscription Revenue
  • Sponsored Challenges (Strava Business)
  • Sell & License Users Aggregated Information
  • Strava subsidiaries, acquisitions, and exits
  • Strava profit and revenue
  • What is the Strava business and revenue model?
  • Strava funding, net worth, and valuation

How does Strava make money and how is Strava free to use? Well, here is a full, in depth, breakdown of their three (3) revenue streams and the different products and services they offer, as well as the Strava business and revenue model, how much money Strava makes per year, and how Strava works.

What is Strava, and how does Strava work?

Strava is a free app for runners and cyclists that tracks their fitness activity by recording their runs, mapping cycling routes, and more.

Founded in 2009 by Mark Gainey and Michael Horvath, Strava now has more than 100 million active users using its app.

So, how does Strava work? To use Strava, simply download their mobile app on the Apple App Store or Google Play store and create an account.

Once you’re signed up, you can do things like record your runs, map cycling routes, set goals, and more – all in the app, for free.

Some of Strava’s competitors include Peloton, FitOn, ClassPass, and other fitness apps.

Strava App in Apple App Store | Strava Business Model | How Does Strava Make Money? | How Does Strava Work?
Source: Apple App Store | Strava

How does Strava make money?

According to Strava, Strava has more than 100 million active users using its app. So how does Strava make money off of all these users?

Below is a breakdown of how much money Strava makes and its revenue model. Including all revenue streams and how much they charge for their services.

Here are the 3 ways of how Strava makes money in 2022

Strava has a revenue model that makes money in three (3) ways; from subscription revenue, sponsored challenges (Strava Business), and selling and licensing users aggregated information to third parties.

#1. Subscription Revenue

Strava makes most of its money through the subscription service they offer to their customers.

Although Strava makes it free to use for its users, they also offer a paid subscription version with its own set of perks that the free version does not provide such as route planning, goal setting, a training log with a training dashboard, and more – all for a monthly price. Which you can see below.

How much does Strava cost? (Strava subscription price)

  • $7.99 per month, or $60 per year when billed annually

Note: Of Strava’s more than 100 million users, it’s unclear how many of them are paying users.

#2. Sponsored Challenges (Strava Business)

Strava also makes money on the B2B (business to business) side of things with Sponsored Challenges.

Sponsored Challenges can last anywhere from a couple of days to a month. And helps a brand gain exposure to a new audience while keeping their existing customers engaged in their brand.

If this is what a brand is interested in doing, challenges start at $20,000 USD and max out around ~$200,000 USD.

Some of Strava’s partners include Reebok, Peloton, Red Bull, and more.

Strava Business Sponsored Challenges | Strava Business Model | How Does Strava Make Money? | How Does Strava Work?
Source: Strava

#3. Sell & License Users Aggregated Information

While Strava does not sell a user’s personal information.

Strava makes it clear on the legal page in the privacy section of their website that “Strava may use, sell, license, and share this aggregated information with third parties for research, business or other purposes such as to improve walking, running or riding in cities via Strava Metro or to help our partners understand more about athletes, including the people who use their products and services.”

You can read it directly from Strava’s legal and privacy page, here.

Important: Strava does not sell a user’s personal information. But can sell and license their aggregated information.

Strava subsidiaries, acquisitions, and exits

To date, Strava has made a total of 1 acquisition.

Mergers and acquisitions business model
Source: Crunchbase | Strava

Strava profit and revenue

In 2021, Strava has a reported $167 million USD in revenue.

Note: Because Strava is a privately held company, they are not required to make their annual reporting, such as Form 10-K’s, pubic.

What is the Strava business and revenue model?

Strava makes money through a few revenue models that they combine within their company, they are:

  • Freemium (upselling) business model
  • Subscription business model
  • Licensing business model
  • Business to business (B2B) business model
  • B2B2C (partnerships) business model
  • Mergers and acquisitions (M&A) business model

Strava funding, net worth, and valuation

Strava’s Crunchbase profile shows Strava has raised $151.9 million over 7 rounds and has a valuation of $1.5 billion as of November 2020.