WaterRower, the boat maker behind brands like Ergatta and CityRow, is making a splash in the connected fitness space.
CityRow has been acquired by boat manufacturer WaterRower, representing another step in the gradual consolidation of the connected fitness market.
The two companies are familiar with each other, with Rhode Island-based WaterRower serving as the manufacturing partner for CityRow, which boasts an omnichannel model with home rowers, digital content, and an in-person studio.
Terms of the deal were not disclosed.
CityRow founder and CEO Helaine Knapp confirmed the news on LinkedIn, writing:
“As of this morning, CityRow has been acquired by our long-time strategic partner WaterRower. This milestone comes almost 10 (!) years after we opened our first studio in New York. WaterRower has been our patron, partner and stable manufacturer since our inception. We couldn't be more pleased with this new phase for CityRow. There's no better place.”
On a call with Bloomberg, Knapp noted that the pandemic has had an “extraordinary impact on connected fitness” and described this phase as a “recalibration phrase,” making now the ideal time for such a deal. He emphasized that it was time.
Boston-based connected fitness boat brand Hydrow was rumored to be considering acquiring CityRow last fall.
In a letter to CityRow members circulated online, Knapp confirmed the deal and wrote that WaterRower would have a “direct role” in CityRow's operations. She assured that new classes and content will be coming next month, members will continue to have access to CityRow apps and features, and WaterRower will continue to provide support and service for CityRow equipment.
A new world of connected fitness
CityRow has secured a $12 million funding round in 2021 to strengthen its proprietary and franchise studio model. Things were smooth sailing at the time, with the connected boat company reporting a 375% revenue increase during the pandemic due to rowing machine sales, monthly subscriptions, and franchise sales.
Amid the challenges of the post-pandemic return to in-person fitness, the connected fitness space has seen two other notable acquisitions and partnerships in recent months. Lululemon has abandoned its Connected Fitness ambitions and partnered with Peloton instead. Meanwhile, Clumbr was acquired by smart home gym maker Forme last October following closures and layoffs at Los Angeles fitness studios.
Current state of rowing
Connected rowing has not yet penetrated the mainstream like stationary bikes and treadmills, but this modality has developed its own subset of enthusiasts.
Hydrow, which has received celebrity backing, strengthened its executive team late last year to accelerate growth. The connected-at-home boating company has teamed up with George Clooney's film The Boys in the Boat to offer themed boating training for members and celebrate the 2023 red carpet. concluded.
Game-based home boating brand Ergatta (created in partnership with WaterRower) continues to churn out advancements in the boating experience, most recently with 'Coach AI' that provides personalized ratings and recommendations for rowers. The software has been released. The boating brand also announced integration with Apple Watch last year.
But Peloton CEO Barry McCarthy suggested to investors last year that despite positive reviews, consumer awareness of the connected fitness brand's rowing was low.
