Whoop CEO Will Ahmed on the “Quantified Self” movement, product design & more | E1786 | Summary and Q&A

TL;DR

Whoop is a high-end wearable device that tracks and analyzes a vast amount of health data, providing valuable insights and personalized recommendations to improve health and performance.

Key Insights

• 😀 Resilience is vital for startups, as they may face multiple challenges before achieving success.
• 🤭 Whoop's focus on health monitoring rather than a wide range of features sets it apart from other wearable devices.
• 🧑‍⚕️ The subscription-based model provides a cost-effective and continuously evolving solution for users to improve health and performance.

Transcript

I know there's a lot of Founders that have trouble raising capital and whoop was one of those businesses I mean there were so many years Jason where it was very hard to raise Capital you know that sort of period of like 2014 to call it 2018 or 19. it was very hard to raise capital and the business almost went bankrupt in 2017 and 18 and then you fa... Read More

Questions & Answers

Q: How does Whoop differ from other wearable devices like the Apple Watch or Fitbit?

Unlike devices focused on multiple features, Whoop is solely dedicated to health monitoring. It collects a larger amount of data and provides more accurate readings, focusing on metrics that optimize health and performance while simplifying the information for users.

Q: What insights and recommendations does Whoop offer its users?

Whoop provides insights on recovery levels, exercise intensity, stress levels, and sleep recommendations. It gives personalized advice on workout readiness, stress management, and sleep optimization based on individual data.

Q: How does the Whoop subscription model work?

Users can choose an annual membership, which includes the hardware and access to continuous software updates and new features. The subscription model ensures a constant cycle of improvement and allows for a more predictable revenue stream for the company.

Q: How does Whoop handle competition, particularly from larger companies like Amazon?

Whoop faced competition from Amazon, who copied their product after expressing interest in investing but ultimately did not. Whoop's resilience and focus on product improvement allowed them to continue growing, while Amazon's copycat product failed and was discontinued.

Summary

In this video, Jason Calacanis interviews the founder and CEO of Whoop, Will Ahmed, to understand the magic behind the success of the Whoop wearable device. They discuss the importance of resilience for founders, the unique features of the Whoop device, the business model pivot, and the challenges they faced with competition from a major player like Amazon. Ahmed explains how Whoop focuses on improving health and performance by collecting a large amount of data and simplifying it into key metrics. The device, which can be worn as a strap, has a sensor array that records various physiological data points related to health and fitness. Ahmed also discusses the importance of sleep tracking and the role it plays in the Whoop device. They delve into the benefits of the subscription-based business model and the continuous improvements they make to the product. Ahmed also shares the story of Amazon's attempt to copy Whoop and the lessons learned from that experience.

Questions & Answers

Q: Why are people obsessed with Whoop when the Apple Watch exists?

Whoop has a focus on helping people improve health and performance by collecting and analyzing a large amount of data. Unlike the Apple Watch, which offers various functionalities, Whoop is solely focused on health monitoring. Whoop simplifies the data into important metrics that users need to know, such as recovery, workout intensity, stress levels, and needed sleep. This non-invasive wearable product resonates with users who are motivated to improve their health and performance.

Q: How is the sensor array in Whoop different from Fitbit or Apple Watch?

Whoop doesn't have multiple apps, notifications, or a screen like Fitbit or Apple Watch. Instead, they have focused on health monitoring and providing users with the necessary information. While Fitbit and Apple Watch collect data at a lower frequency, Whoop collects data at a higher fidelity. The physiological data points collected by Whoop include heart rate, heart rate variability, sleep staging, respiratory rates, skin temperature, stress levels, and performance measurements. The accuracy of these readings and the ability to simplify the information for users are what sets Whoop apart.

Q: Why does the Apple Watch struggle with recording consistent heart rate during activities?

The inconsistency in heart rate recording on the Apple Watch can be attributed to the challenge of measuring heart rate accurately on the wrist and the device being designed for a wide range of use cases beyond health and fitness. In contrast, Whoop faced this challenge early on as they started by working with high-performance athletes. This required them to develop algorithms that could work with diverse characteristics such as different skin colors, wrist sizes, hairiness, sweat, and movement. Their algorithms were built on a diverse data set, resulting in accurate readings even in challenging situations.

Q: What do people use Whoop for today and who is their ideal customer?

While Whoop's initial focus was on working with elite athletes, their audience has expanded over the years. The common attribute that holds their users together is motivation in various aspects of life. They have fitness-oriented members as well as individuals motivated in their daily lives, careers, studies, or personal goals. Whoop helps users understand their bodies better and take their performance to the next level, whether it's in sports, work, or overall lifestyle improvement.

Q: Why did Whoop adopt a subscription-based business model instead of competing on hardware?

Whoop made a significant pivot in their business model, shifting from selling high-end hardware to a subscription-based model. This change was driven by the realization that although their product had strong user retention, they faced challenges in scaling their user base. They observed that Fitbit, a hardware-focused company, had high drop-off rates despite strong sales. On the other hand, Peloton, a subscription-based company, was experiencing substantial growth and higher valuations. Whoop wanted to align with the subscription model's advantages, such as continuous product updates and evolving with customer needs. They offer various subscription options, including an annual membership that includes the hardware and continuous software updates.

Q: How did Whoop deal with the challenge of Amazon wanting to invest in the company and then copying their product?

Whoop faced vulnerability as a company during a fragile period when they were considering an investment from Amazon. Ultimately, Amazon chose not to invest and later released a product that was a direct copycat of Whoop. While it was initially a setback, Whoop used this as motivation and rallied internally. They even included messages on their circuit boards stating, "Don't bother copying us, we will win." Over time, Amazon discontinued their copycat product, proving that big companies lack the passion and mission to succeed in certain areas. The experience highlighted the importance of resilience and the ability to rise above challenges.

Q: How did Whoop continue despite facing capital raising challenges and almost going bankrupt?

Whoop encountered difficulties in raising capital during the period of 2014 to 2018, and the company was close to bankruptcy in 2017-18. However, they persisted and eventually transformed into a multi-billion dollar company in just a few years. The founder emphasizes the importance of resilience for startup founders, urging them to keep going despite the challenges. He also highlights that drastic actions, such as a business model pivot, can be necessary when something is broken.

Q: How has the addition of sleep tracking and the awareness of its importance affected Whoop's product?

Whoop always believed that sleep would be a core aspect of their product. The growing awareness of the importance of sleep in overall health has contributed to the increased interest in sleep tracking. Whoop's technology has advanced to the point where it can measure sleep staging with similar accuracy to sleep laboratories. The information provided by sleep tracking has resonated with users, who now realize the significance of understanding and optimizing their sleep. Sleep has become a meaningful metric, replacing the popularity of step counting, as people have become more conscious of their sleep quality.

Q: How does Whoop's business model compare to traditional gym subscriptions like Equinox?

Whoop's subscription-based model offers a more cost-effective alternative to traditional gym memberships. While Equinox, for example, may cost around $6,000 per year, Whoop provides access to various smart devices and continuous software updates for a fraction of that price. With their own gym equipment at home, users can achieve similar results and have a more tailored fitness and health monitoring experience. Whoop's subscription model focuses on delivering continuous value and improvements to their members.

Q: What new features or advancements has Whoop added to its product?

Whoop continuously improves its product through software updates and new features. Recently, they launched the strength trainer, utilizing a company they acquired called push. The strength trainer provides a way to quantify weightlifting workouts and measure the muscular load on the body. This feature extends the strain metric to include both cardiovascular and muscular load. Whoop has also introduced Whoop Body, a line of clothing where the sensor can be placed in various locations on the body, allowing users to track metrics without wearing the device on their wrists. These advancements are driven by the interplay between hardware and software, where new features are introduced through firmware and software upgrades.

Takeaways

The video emphasizes the importance of resilience for startup founders and the ability to overcome challenges. Whoop's story showcases how a business can emerge from near bankruptcy to become a multi-billion dollar company with the right combination of product focus and determination. The subscription-based business model has enabled Whoop to continuously improve its product and provide value to its members. Sleep tracking has gained significant importance, and Whoop's technology allows for accurate measurement and understanding of sleep quality. By focusing on either being cool or invisible, Whoop provides an aesthetically pleasing wearable device that can be seamlessly integrated into users' lives.

Summary & Key Takeaways

• Whoop is a wearable device that collects extensive physiological data, including heart rate, heart rate variability, sleep staging, respiratory rates, and more.

• The device simplifies the collected data into key metrics like recovery, strain, and sleep quality to help users optimize their health and performance.

• Whoop's subscription-based business model offers continuous software updates and new features to enhance user experience, making it a cost-effective alternative to traditional fitness and health solutions.