In 2015, the start-up, founded by four Upper Austrians, was taken over by the German Adidas Group for 220 million euros. At the time, the Upper Austrian company was considered a model company in the field of sports apps. Most recently, the name Runtastic was removed from the company name, and last year around 70 of the 250 employees were laid off. At a staff meeting this morning, employees were informed that the Linz, Salzburg and Vienna locations would be closed. The first rumors of a closure had emerged last week. However, Adidas did not respond to corresponding inquiries.
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Florian Gschwandtner: “Austria has left a lot of potential untapped”
Runtastic was founded in 2009 by four young entrepreneurs Florian Gschwandtner, Christian Kaar, René Giretzlehner and Alfred Luger and quickly became one of the most successful start-ups. The running app, which was later expanded to include other sports, was a leader in this field for some time. In 2013, Axel Springer Verlag bought in and took over 50.1 percent. In 2015, Adidas’ entry was announced. In 2018, Gschwandtner resigned as managing director and was replaced by the American Scott Dunlap. However, the company did not develop as Adidas had planned. In 2022, the value of the brand was reduced by 16 million euros in the annual report.
Adidas confirmed the plans late this morning. In the company’s words: “Adidas is bundling digital competencies at central locations.” Accordingly, the “Adidas Running” app will be operated from the Amsterdam, Zaragoza and the company headquarters in Herzogenaurach locations. The aim is to “work more effectively on the digital offering and at the same time align structures with market conditions and the strategic direction of the company.”
Runtastic CEO Dunlap says they regret the impact of the decisions. “We are doing everything we can to make the change process respectful and fair for everyone affected. We would like to thank all employees for their tireless efforts.”
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Author
Dietmar Mascher
Deputy Editor-in-Chief, Head of Business Department
Dietmar Mascher
What factors contributed to Runtastic’s decline after its initial success?
The Rise and Fall of Runtastic: A Cautionary Tale of Entrepreneurship and Innovation
In the world of entrepreneurship and innovation, there are few stories as striking as that of Runtastic, an Austrian sports app company that rose to fame and fortune before facing a devastating downfall.
From Humble Beginnings to Global Success
Founded in 2009 by four young entrepreneurs from Upper Austria, Florian Gschwandtner, Christian Kaar, René Giretzlehner, and Alfred Luger, Runtastic quickly became a leader in the sports app industry. The company’s running app, which was later expanded to include other sports, was a global success, and in 2015, it was acquired by the German Adidas Group for a staggering 220 million euros.
The Fall of Runtastic
However, in recent years, Runtastic’s fortunes began to decline. In 2020, the company removed its name from its brand, and around 70 of its 250 employees were laid off. The final blow came when the company announced the closure of its Linz, Salzburg, and Vienna locations, leaving many employees without jobs.
What Went Wrong?
So, what led to the downfall of this once-thriving company? According to experts, several factors contributed to Runtastic’s decline. One of the main reasons was the change in market dynamics. With the rise of new competitors and shifting consumer preferences, Runtastic struggled to adapt and innovate. Additionally, the company’s acquisition by Adidas led to a loss of autonomy and a shift in focus from innovation to profit.
The Cautionary Tale of Runtastic
The story of Runtastic serves as a cautionary tale for entrepreneurs and innovators. It highlights the importance of adapting to changing market conditions, staying true to one’s vision, and maintaining a focus on innovation. It also underscores the risks of acquisition and the potential loss of autonomy that comes with it.
Lessons Learned
What can we learn from Runtastic’s rise and fall? Here are some key takeaways:
- Stay Agile: In today’s fast-paced business environment, it’s essential to stay agile and adaptable to changing market conditions.
- Innovate or Perish: Innovation is key to success in any industry. Companies must
