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Chronicles

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Jawbone discounts its fitness trackers for corporate customers with UP for Groups

Your Boss Would Like You to Wear a Jawbone Fitness Tracker  —  Jawbone wants to become a part of the workday.  The company's new service, UP for Groups, will sell discounted fitness trackers …

Businessweek Joshua Brustein

Context & Ripple Effects

Jawbone had just broadened its wearable lineup with the UP3 and lower-priced MOVE, creating products at different price points. UP for Groups adds a bulk-purchasing route aimed at employers rather than individual retail buyers.

The move matters because it shifts part of the purchase decision from the wearer to the organization buying devices in volume, making corporate accounts a distinct distribution channel for Jawbone.

First-order effects

  • Corporate customers can buy Jawbone trackers at discounted rates through UP for Groups, while Jawbone gains a direct sales channel to workplace buyers.
  • Employees offered devices through participating employers become users selected through an organizational purchase rather than a personal retail decision.

Second-order effects

  • Jawbone's wearable lineup can be sold through corporate procurement as well as consumer retail, increasing the importance of volume pricing and employer account sales.
  • Employers evaluating fitness trackers gain greater buyer leverage because discounted group purchasing concentrates demand into larger orders.

Third-order effects

  • If group programs gain adoption, workplace wellness can move wearable demand toward institution-led purchasing, where employers rather than individual consumers shape device choice and pricing.

The trend: Consumer wearables are beginning to seek institutional distribution channels that aggregate individual demand through employers.