Evaluating only FitPal Mexico’s profile at its peak — without knowing the outcome — the model ranked Unit economics as the #1 likely cause. Documented cause: Market timing.
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Documented cause
FitPal aggregated gym memberships across Mexico City, allowing users to access multiple gyms on a single subscription. It grew to 80,000 users before COVID-19 closed all gyms in March 2020. With zero gym access and insufficient reserves to survive a prolonged closure, FitPal shut down in 2020.
Lesson
“Marketplace models dependent on physical venues have zero resilience when the venues close. A 6-month cash reserve is the minimum for any business where physical presence is the core product.”
FAQ
Why did FitPal Mexico fail?
FitPal, a Mexico City gym subscription aggregator with 80,000 users, shut down in 2020 when COVID-19 closed all gyms. The company had insufficient reserves to survive the prolonged physical closure.