Masters of Scale - When one customer call changes everything (Wellhub CEO Cesar Carvalho) | Masters of Scale
Cesar Cavalo, a former McKenzie consultant, founded WellHub after realizing the importance of resilience and well-being for career success. Initially, the company, named GymPass, focused on selling day passes to gyms directly to consumers. However, the model struggled, leading to a pivotal shift to a B2B approach after a suggestion from a PWC HR director. This change allowed companies to offer wellness benefits to employees, significantly increasing user engagement and company growth. WellHub now partners with over 22,000 companies and offers access to gyms, wellness apps, and more, serving 4 million users globally. The company rebranded from GymPass to WellHub to reflect its expanded offerings beyond gym access, including meditation, nutrition, and other wellness services. Cavalo emphasizes the importance of company culture in promoting employee well-being and believes wellness should be a universal right.
Key Points:
- Cesar Cavalo founded WellHub to address the lack of employee well-being in corporate environments.
- The company pivoted from a B2C model to a B2B model, partnering with companies to offer wellness benefits to employees.
- WellHub provides access to gyms, wellness apps, and other services, serving 4 million users in 11 countries.
- The rebranding from GymPass to WellHub reflects its expanded focus on holistic wellness beyond just gym access.
- Cavalo stresses the importance of trust and empowerment in company culture to enhance employee well-being.
Details:
1. 🏃♂️ Cesar's Wake-Up Call: Prioritizing Well-being
- Cesar Cavalo, a recent college graduate working for McKenzie in Brazil, realized the need for resilience, emphasizing good sleep and physical activity, after experiencing long workdays that impacted his health.
- He co-founded WellHub, focusing on providing B2B services like gym memberships and meditation apps to enhance employee well-being.
- WellHub underwent significant challenges, including a pivot and rebranding, which were crucial to its current success.
- Now, WellHub is valued at $2.4 billion and serves 4 million people across 11 countries, showcasing its impact on promoting wellness in the workplace.
2. 🌟 From Milk Delivery to Harvard: A Journey of Transformation
2.1. Personal Background and Educational Pursuits
2.2. Business Evolution and Harvard Experience
3. 💡 From Classroom Insight to Startup Vision
- The speaker gained confidence and funding to drop out of business school and start Gympass by getting co-founders on board.
- One co-founder left his MBA program at MIT, and another gave up a job offer from Bain & Company, indicating strong commitment.
- The speaker emphasizes that the relationship and support from co-founders were crucial to moving forward with the startup.
- The decision to leave business school was facilitated by the flexible return options offered by HBS and McKinsey, providing a safety net.
- The speaker highlights the importance of having a strong support system and safety nets from reputable institutions, enabling risk-taking.
4. 👥 Assembling the Dream Team and Securing Initial Funding
4.1. Securing Initial Funding
4.2. Assembling the Dream Team
5. 🔄 Strategic Pivot: Transitioning to a B2B Model
5.1. Identifying the Need for Change
5.2. Implementing the B2B Model
5.3. Strategic Expansion and Client Acquisition
6. 📈 Rebranding to WellHub: Expanding and Adapting
- The company shifted from a B2B model centered on gym access to a broader wellness platform in response to the closure of physical gyms, necessitating a rebrand to WellHub.
- The rebranding process was initiated to reflect the expanded wellness services, including partnerships with digital wellness platforms like Apple Fitness Plus, Headspace, MyFitnessPal, and Sleep Cycle.
- Stakeholders and clients recognized the holistic approach, validating the need for a new name that accurately represents the company's comprehensive wellness offerings.
- This strategic pivot took two years to finalize the name 'WellHub,' symbolizing a central hub for wellness activities, aligning with the company's expanded services.
- Challenges during the transition included maintaining existing client relationships while expanding service offerings, ensuring a seamless integration with new wellness partners.
- The rebranding positively impacted the company's market perception and positioned WellHub as a leader in holistic wellness solutions, catering to diverse health needs beyond physical gyms.
7. 🌍 Global Expansion: Scaling WellHub's Impact
- The wellness industry experienced a significant demand surge during the pandemic, similar to companies like Peloton, but faced challenges as COVID-19 restrictions eased.
- Trends in the wellness space shift approximately every two years, with past trends like Zumba and CrossFit being replaced by activities like pickleball.
- Longevity in the wellness industry depends on adaptability to new trends, indicating the need for platforms that remain relevant regardless of the current trend.
- User behavior is shifting towards strength training and exercising during 'wellness hours' (5-6 PM weekdays), replacing traditional happy hours.
- Companies are encouraging wellness activities over alcohol at gatherings, aligning with growing scientific evidence on muscle mass benefits and alcohol harms.
- Wellness and well-being are increasingly valued, especially among younger generations, often ranking as highly as salary in importance to employees.
- The shift in values towards wellness is predicted to become a business imperative as younger generations prioritize it more.
8. 💪 Wellness Trends: Embracing Future Challenges and Opportunities
- Wellness needs are universal, with both companies and individuals desiring better mental and physical health.
- WellHub operates in 11 countries, partnering with over 22,000 companies and having about 4 million subscribers.
- 60,000 gyms and studios are partnered with WellHub, covering 30 to 50% of locations in each country of operation.
- WellHub collaborates with the top digital wellness apps, including three of the top five in each category on Apple Store and Google Play.
- WellHub employs about 2,000 people and has been experiencing rapid growth.
- The company's challenge is to expand its client base from 22,000 to 200,000 companies.
- Currently, WellHub engages 30-40% of employees of client companies; the goal is to increase this to 100%.
- To achieve growth, WellHub plans to enhance its digital platform and strengthen partnerships with leading wellness apps, ensuring comprehensive service offerings.
- WellHub aims to increase its market penetration by expanding its presence in existing markets and exploring new geographic locations.
9. 🤝 Cultivating a Culture of Trust and Well-being
- Creating a culture of trust within a company is akin to the trust found in a marriage, emphasizing deep, mutual confidence without the need for constant oversight.
- Empowerment arises naturally from this trust, enabling employees to make decisions that align with both their well-being and the company's interests.
- Leaders should actively foster an environment where feedback is encouraged and valued, promoting a cycle of continuous improvement and engagement.
- Optimal employee well-being is achieved by harmonizing social, physical, and mental health with the delivery of business results.
- An empowered workforce, supported by a trusting culture, contributes significantly more to business success and innovation.