For the naysayers, don't assume that you somehow know more than the very smart people running those two extremely successful companies.
This is co-marketing 101, which might as well be an entry-level class in business school: Associate your brand with another complimentary, valuable brand that helps you fill a business need; and reap the mutual benefits.
Rest assured that the bean-counters at CC have worked all the possible scenarios – and arrived at the $1 per moving hour / $40 per month ceiling / $80 max balance for a
specific reason.
Remember that their wholesale cost on items is a
fraction of the retail.
- CC is buying an INCREDIBLE amount of multi-channel exposure on individual users' social feeds for that money.
- Strava gets an very compelling and *EXCLUSIVE* reason to retain existing users and grow their base in an increasingly competitive landscape.
It really is a very smart play and I expect it will be extremely successful for both of them.