As gyms and fitness centers throughout the country have shut down due to the coronavirus pandemic, many have reassessed their workout regimens. And the changes have brought a boost in sales for a Chicago-based elliptical startup.
Cubii, which launched in 2014 with a compact elliptical device designed to be used while sitting at a desk or on the couch, reached a major milestone during the pandemic, selling its 500,000th device. Cubiis range in price from $249 up to $349.
“Even prior to Covid, Cubii was growing really fast,” said Arnav Dalmia, Cubii’s co-founder and CEO. “And then Covid happened, and for the first couple of days, we were all like ‘What’s going to happen? Are people going to stop buying our products?’”
But sales didn’t slow. In fact, they picked up, Dalmia said. From March to April, Cubii saw 100% month-over-month growth, Dalmia said, meeting all of the company’s second quarter projections just in the month of April.
“We started to realize that people are going to be indoors for a while,” Dalmia said. "They’re not going to be leaving homes, so it kind of made sense."
Founded in 2014, the device is popular among people of all ages and abilities, Dalmia said, but added that older consumers and those with underlying health conditions tend to be the most frequent buyers.
Using Cubii regularly, Dalmia said people will see changes in their body, whether it’s losing weight or gaining strength. Some Cubii customers have reported losing 5 pounds in a single week, Dalmia said.
To grow the company, Cubii largely relied on word of mouth strategies early on, but now advertises its products through television and online ads.
Cubii, which manufactures its devices in Asia, has not raised any institutional venture capital to expand the business. When the company first launched, the founders raised a small friends and family round.
“We haven’t needed VC money to grow,” Dalmia said. “If you’re smart about your business, there might be ways in which you can still achieve high growth and [not] give up a lot of ownership.”
Cubii now employs more than 30 people, recently adding a dozen new employees. Some of its new executive hires include Head of eCommerce Kristin Greenwell; Vice President of Business Development Liz Kammel Tilatti; Vice President of Operations and Supply Chain Lyle Lee; and Director of Consumer Insights and Innovation Jake Viner.
Looking ahead, Cubii plans to launch a new version of its seated compact elliptical product in 2020. There are also plans to create live workout content designed especially for the Cubii.
Similarly to how Peloton has built an online service to accompany its stationary bikes, Cubii would offer Cubii-specific workout classes to owners of the product on a subscription basis, Dalmia said. Users would be able to watch classes on their own television or tablet devices, but Cubii is also experimenting with adding a screen to its ellipticals.
As the next generation of Cubii is developed, Dalmia uses his own devices at home to help envision ways to improve the experience.
“I have more Cubiis than I can count at home,” Dalmia says with a laugh.
He has seven, one of which remains at his desk and another which lives by the couch.
“I’ve actually started using my Cubii more myself during the pandemic,” he said.
