An Uphill Battle

Zwift has been through layoffs and a leadership change in 2024, but co-founder and CEO Eric Min says he's learned that building a startup, like cycling, is an endurance test.

-  BRIAN CONTRERAS

Zwift got off to a somewhat rocky start this year. In February, the Long Beach, California-based fitness app company, which lets users bike through virtual worlds in the comfort of their own homes for $20 a month, announced a round of layoffs, as well as the departure of co-CEO Kurt Beidler. That left co-founder and now sole CEO Eric Min, 57, to guide a leaner Zwift, which he says is currently in a “strong position to scale.”

It was a tough time for both the company and Min—but also an opportunity to prioritize what matters most. And the business has had no shortage of backers supporting its mission. Founded in 2014, Zwift has raised a total of $620  million from dozens of investors, including private equity firms Permira Holdings and KKR as well as Amazon’s Alexa Fund, which backs companies making smart devices for consumers. After seeing interest skyrocket during the pandemic, however, Zwift has struggled to maintain momentum, facing multiple rounds of layoffs as competitors such as Peloton and Tonal watched their valuations plummet. Now, Zwift is chasing new opportunities, which include the launch this past summer of its own indoor smart bike. Called the Zwift Ride and priced at $1,300, the product is a bid to lower the barrier to entry for consumers who are curious about indoor cycling.

Min, a cyclist himself, spoke with Inc. about rightsizing his company over the past year, and why entrepreneurs should make tough decisions fast.