“What’s more likely going on here is that Under Armour sees diminishing value in this segment over the long term, and there are a number of possible reasons about why that might be.
“Under Armour’s overall brand image is more associated with professional athletics, and with an enthusiast/semi-pro clientele (or those aspiring to that designation),” wrote Darrell Etherington of Tech Crunch. Under Armour may sense a lack of value in apps that appeal to the casual exerciser/dieter and note that competition for that market is coming from several corners and from contenders as fierce as the Nike and Apple. Both had built up followings and name recognition, the Danish-born Endomondo had a particularly global following, making them ripe for acquisition. MyFitnessPal was established in 2005, practically the dawn of apps and Endomondo in 2007. “Under Armour Acquires Endomondo and MyFitnessPal to Establish the World’s Largest Digital Health and Fitness Community,” read a press release, which noted the two brands combined then had 100 million users. In February of 2015, Under Armour’s digital ambition seemed to be as grand as an emperor’s when it acquired both apps. However, the sale, to the investment firm Francisco Partners, will cost the company $130 million and the $85 million spent on Endomondo will apparently go up in smoke. Under Armour President and CEO Patrik Frisk said the sell-off and phase-out were moves to optimize and streamline the brand’s offerings, stating, “This announcement reduces the complexity of our consumer’s brand journey by empowering sharper alignment with our long-term digital strategy as we work towards a singular, cohesive UA ecosystem.” Though it is keeping MapMyRun and MapMyRide, two apps that plan jogging and biking routines, respectively, the changes leaves Under Armour bereft of a central platform in the online marketplace. It bought that app the same time as MyFitnessPal for $85 million. The Baltimore-based apparel company also announced it is phasing out Endomondo, another app used to track fitness progress by the end of 2020. Under Armour is selling MyFitnessPal, a calorie-calculating app with 200 million users, for $345 million, five years after acquiring the app for $475 million. Facing fierce competition and an identity crisis, Under Armour sells MyFitnessPal and plans to phase out Endomondo by the end 2020.
0 kommentar(er)
