Where is All This Heading? A tentative vision for the future of indoor cycling as ROUVY Acquires FulGaz

In a significant shake-up within the virtual cycling industry, ROUVY acquired FulGaz from Ironman and simultaneously partnered with IRONMAN as its official indoor training platform partner.

How did FulGaz get here?

FulGaz, an indoor cycling platform renowned for its high-quality, real-world video simulations, has been a notable player for many years.

Its 2021 acquisition by Ironman reflected the realities of a Covid-hit world where indoor training and competition seemed the only surefire way to secure revenue streams going forward.

Even though Covid came to an end and life resumed as usual, dcrainmaker points out that Fulgaz was unable to attract the numbers of triathletes to its platform that Ironman might expect, and the subsequent IndieVelo+TrainingPeaks hook-up also dented subscriptions.

The New Partnership with IRONMAN

ROUVY has become the official digital sports platform for IRONMAN and IRONMAN 70.3 events as part of the agreement. The partnership provides athletes access to IRONMAN race courses and training tools integrated with third-party platforms like TrainingPeaks and Wahoo. Features include advanced analytics, realistic course simulations, and structured workout options for triathlon training.

ROUVY’s Acquisition

ROUVY’s acquisition of FulGaz is part of a broader strategy to solidify its position as a top indoor cycling and triathlon training platform. Besides the technology, one particular asset it acquires is the Ironman courses, not forgetting the kudos of links with Ironman.

Where Are The Mergers Heading? What is the structural future of Indoor cycling?

The indoor training market is once again at a crossroads, with companies taking one of two distinct paths. On one side have been those aiming to create “one-stop indoor training shops,” offering broad ecosystems designed to cater to diverse athlete needs. Conversely, niche platforms focus on premium, tailored services for specific groups. The challenge for the latter lies in scalability: niche audiences may not have the critical mass needed to generate consistent cash flow for sustained growth and innovation.

The more prominent players in the market historically differentiated their strategies to compete with Zwift, the current market leader. Wahoo focused on a hardware-first approach, integrating products like the KICKR CLIMB to build technical excellence. TrainingPeaks has concentrated on serious athletes, leveraging detailed plans and analytics. ROUVY and similar platforms emphasize real-world simulations, replicating iconic routes for immersive training. Meanwhile, Zwift and free competitor offerings like MyWhoosh prioritize gamification, creating virtual environments where the experience becomes the product.

Predicting that “Zwift will still be king” in five or ten years is tempting. However, its financial sustainability remains uncertain. Despite its popularity and dominance, Zwift has yet to achieve profitability, leaving it vulnerable in an industry where cash flow issues can transform apparent success into insolvency almost overnight.

Some predict that the market will eventually consolidate around a single dominant platform. TrainingPeaks’ recent acquisition of IndieVelo suggests the beginnings of such a trend, but its focus on committed athletes may limit its potential to capture a broader audience.

Alternatively, Strava could position itself as a leader in the digital cycling space with a few strategic mergers. With its massive user base, it has the scale necessary for widespread appeal. However, questions about its profitability and the proportion of paying subscribers make its long-term prospects uncertain. Even with millions of users, profitability hinges on converting a significant percentage to paying customers.

A Tentative Vision for the Future

In the long term, it seems plausible that the indoor cycling market will split into two primary segments. One segment could focus on casual users and varied indoor experiences (gaming+reality-inspired), where high volumes of customers and small margins drive profitability boosted by sponsorship and advertising. Platforms in this space will refine the model that Zwift and MyWhoosh are already pioneering – including elements of training plans, links to real-world cycling and analytics.

The other segment will cater to serious athletes willing to pay a premium for an experience that seamlessly integrates advanced training plans, structured indoor sessions, and outdoor technical compatibility. This group will demand platforms offering advanced analytics, deep technical integrations with devices, and a holistic approach to training and racing.

Ultimately, the success of any platform will depend on its ability to balance financial sustainability with user needs. Whether through consolidation, differentiation, or innovation, the future of indoor cycling will likely revolve around platforms that can serve both the masses and the niches effectively.

Q: Where will the indoor training world be in 5 years? What do you think?

I think it would be TrainingPeaks plus whoever else has the deeper pockets for the mass market.