[ad_1]

Strava CEO quits AGAIN after laying off 15% of its workforce – 38 people – and disastrous secret launch of new price scheme costing up to $80 per month: Harvard graduate previously stepped down in 2014 because wife had cancer

  • Michael Horvath co-founded exercise app Strava in 2009 to encourage a sense of community for active people and allow them to track their activity
  • He stepped down in 2014 to care for his wife Anna, whom he married when they were both in their early 20s and who died in 2017: he returned in 2019
  • On February 6, Horvath said he was stepping down as CEO, saying they ‘need a CEO with the experience and skills to help us make the most of this next chapter’

The CEO of exercise app Strava has announced he is stepping down, after the disastrous rollout of a new price hike – which they did not tell customers about – and the layoff of 15 percent of the company’s workforce.

Michael Horvath, who co-founded the app with his fellow Harvard rower Mark Gainey in 2009, said he felt the company needed new leadership.

Horvath stepped aside in 2014 to care for his wife Anna and their four children, as she was dying of terminal cancer. She passed away in 2017, and he returned as CEO in 2019.

The New Hampshire-based tech entrepreneur said he had concluded that ‘Strava needs a CEO with the experience and skills to help us make the most of this next chapter’. 

Michael Horvath co-founded Strava in 2009. Earlier this month he announced he is resigning as CEO

Michael Horvath co-founded Strava in 2009. Earlier this month he announced he is resigning as CEO

The exercise monitoring app has 95 million users worldwide, according to Business of Apps

The exercise monitoring app has 95 million users worldwide, according to Business of Apps

In a letter on the company’s website, Horvath wrote: ‘This week I let Strava, the company, know that we are commencing the search for my successor as CEO. I feel it is important to share the same news with you, the Strava Community.’

Horvath met his wife Anna, an artist and printmaker, while they were both studying at Northwestern University in Evanston, Illinois. The pair were married for 25 years and had four children: she died in 2017 aged 48

Horvath met his wife Anna, an artist and printmaker, while they were both studying at Northwestern University in Evanston, Illinois. The pair were married for 25 years and had four children: she died in 2017 aged 48

He said he was proud of his work at the app, which now has active users in every country worldwide, and 40 million activities uploaded per week. There are 95 million users worldwide, according to Business of Apps.

The app allows users to track their routes on various sports, such as cycling, running, skiing and kayaking. People can ‘like’ each other’s sporting achievements by giving ‘kudos’.

It soared in popularity during the pandemic, with two million new users each month during 2020. 

‘As co-founder and CEO, it’s only part of my job to ensure we are picking the right path to that destination,’ Horvath wrote on February 6. 

‘The other part of it is to ensure we always recruit and support the right leaders for the right times. 

‘What got us here will not be exactly the same as what will get us there.’ 

He added: ‘The search for Strava’s next CEO is underway and I can’t wait to see how Strava becomes the company and service that motivates the world to move.’

The company came under intense criticism from its users for the new pricing plan, and on January 23 – two weeks before Horvath’s resignation – apologized for the botched roll out.

Horvath is pictured with his co-founder Mark Gainey. The pair met at Harvard

Horvath is pictured with his co-founder Mark Gainey. The pair met at Harvard

Horvath said it was time for someone else to lead Strava into the next chapter

Horvath said it was time for someone else to lead Strava into the next chapter

The company increased pricing at varying rates, up to doubling the price for some monthly users up to $80 a month – but did not inform them.

Instead, they sent out a standard renewal note saying that the subscription was renewing at a higher rate – while the website still showed an incorrect lower price. 

‘We updated our pricing. Our messaging was very confusing. So we are providing more clarity,’ the company said.

‘In an effort to roll out pricing updates for our subscription, we made a mistake by not providing enough information directly to our community. We sincerely apologize for the confusion and concern this has caused many of our valued subscribers.

‘Our intention was not to hide these pricing changes, we just moved too fast. We also missed the opportunity to inform long-standing monthly subscribers that, by shifting from paying monthly to annual, they can avoid a significant price increase altogether.’

The chaos came shortly after they laid off 38 people in December, representing 15 percent of the workforce. 

Strava’s layoffs were carried out as several other companies in the tech and cycling industries announced similar staff cuts. 

[ad_2]
This post first appeared on Daily mail