Fitbit Inc (NYSE:FIT) Turns To Software Updates And Wellness Program To Attract New Users


Fitbit Inc (NYSE:FIT) in partnership with UnitedHealthcare and QUALCOMM, Inc. (NASDAQ:QCOM) has launched a new program that seeks to motivate people to attain their workout goals. Users who complete activities using the company’s Charge 2 devices stand a chance of winning up to $1500 worth of health care credits as part of the program.

Fitbit’s Wellness Program

Motion is the wellness program that will be run by UnitedHealthcare, powered by Qualcomm’s 2net remote care cloud-based platform. Any fitness goals attained and tracked by Fitbit devices on this front will earn users $4 worth of credits a day. The move to push through with a wellness program comes on the heels of a disappointing year, where the juggernaut in wearables failed to draw in new users with its gadgets.

However, UnitedHealthcare selecting Fitbit for the program over the likes of Garmin Ltd. (NASDAQ:GRMN) is a further testament that the company is still a force to reckon with according to Chief executive officer, James Park.

“The other thing that we’re bringing to the table is 10 years of experience in this category. We have shipped over 50 million devices,” Park said. “So [if] you think about the hundreds of millions of covered lives, a company like United Healthcare really needs a partner that’s proven in this category, so that’s where we come in.” said Mr. Park.

Focusing On Consumer Engagement

The unveiling of the new wellness program also follows the announcement of new software updates and new app features as Fitbit tries to shrug off the disappointments of last year. Software is an area that the company is planning to pay more attention to, as it looks to meet consumer needs and keep them engaged with its products.

A shift of focus to software is an admission by Fitbit that innovation in the space might not be all about hardware. Keeping consumers engaged regardless of the product of use appears to be the company’s main objective this year, as it looks to shore up its earnings. By pursuing exciting software updates, the company hopes to make consumer experience on its gadgets more sticky.

Fitbit was down by 3.20% in Thursday trading session closing the day at lows of $7.86 a share.

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