wework rides lifestyle change to become new economy star
Last Updated : GMT 09:40:38
Themuslimchronicle, themuslimchronicle
Themuslimchronicle, themuslimchronicle
Last Updated : GMT 09:40:38
Themuslimchronicle, themuslimchronicle

WeWork rides lifestyle change to become new economy star

Themuslimchronicle, themuslimchronicle

Themuslimchronicle, themuslimchronicleWeWork rides lifestyle change to become new economy star

WeWork
San Francisco - Muslimchronicle

Going to the office isn't what it used to be. As more workers shift to on-demand and "gig" employment, the workplace has changed, and no company has capitalized on this more than WeWork.

With free-flowing beer and coffee, the smartly designed offices that have popped up in dozens of cities in some 20 countries have become coveted by small firms and freelancers in technology and other sectors.

WeWork, with a whopping valuation by investors of $20 billion, has taken the lead in the co-working space and in the process is disrupting the office and real estate market.

"At WeWork, we want to create a world where people work to make a life, not just a living," says chief executive Adam Neumann, who co-founded the group in 2010 in New York with  Miguel McKelvey.

Those who rent desk space or enclosed offices at WeWork are not just clients, they are members of a "community" under the WeWork credo.

Started in New York, WeWork has expanded to some two dozen US cities and around the world in Brazil, Argentina, China, Japan, India, Ireland and Israel, among others, and claims more than 150,000 members.

WeWork supplies an internet connection, cleaning service, a reception desk and more. In San Francisco, the $400 monthly rent offers a workspace in a shared office, while an enclosed office for several people may cost several thousand dollars.

The monthly deals can be particularly attractive to independent workers who don't want to make a long-term commitment. But WeWork also rents to employees of large firms such as IBM where regional offices are less convenient.

WeWork's annual revenues have topped $1 billion, according to Neumann, amid speculation the group would launch a public share offering.

- Expanding perks, activities -

Steve King, analyst at Emergent Research, said WeWork's strength is building a sense of community, allowing its members to benefit from the network of co-workers from diverse sectors.

WeWork offers a mobile application that enables users to contact other members, and be notified of events ranging from cocktail receptions to manicures.

Expanding its mission, WeWork has begun a handful of "co-living" spaces that offer some of the same perks, and recently acquired the online social network Meetup -- which keeps members apprised of events ranging from tech networking sessions to sporting events -- and the Flatiron School, which provides online and offline classes and training.

But WeWork's most visible move came in October with the announcement it would buy the landmark Lord & Taylor store on New York's Fifth Avenue -- vastly increasing its visibility with the historic building that will become its new headquarters, with expanded co-working space.

As it ramps up its business, WeWork defies categorization.

"They don't want to be a real estate company because real estate's old and boring, whereas they want to be new and hip," King said.

While it's not quite a tech company, "they want to be a tech-enabled company that's creating human interaction," according to King.

WeWork has risen to the top of a crowded field of co-working rivals, and earlier this year got a $4.4 billion capital infusion from Japan's SoftBank Vision Fund.

"WeWork is disrupting preconceived notions of work styles and opening up myriad opportunities for the next generation of creators around the world by taking a scientific approach that fully utilizes the latest technologies," said SoftBank chairman and CEO Masayoshi Son.

The WeWork model has yet to be tested in a weak economy, and King points out the model carries some risk because WeWork has to buy real estate or sign long-term leases for its space while renting to members on short-term deals.

"The risk in the leasing model is that if you face a recession, and you've leased long-term and you're selling short term, they could lose a lot of members but still have to pay the lease," King said. 

"The real estate risk is that they pay too much and won't be able to fill it."

WeWork's  head start however could help it be more resilient, the analyst noted.

"They always argued that WeWork creates network effect, which is the more members they have, the more valuable they are," King said.

themuslimchronicle
themuslimchronicle

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

wework rides lifestyle change to become new economy star wework rides lifestyle change to become new economy star

 



Themuslimchronicle, themuslimchronicle

GMT 06:40 2017 Saturday ,16 December

Walker needs brains not just brawn

GMT 08:15 2017 Thursday ,07 September

US oil giant ExxonMobil plans Cyprus gas exploration

GMT 18:11 2011 Monday ,18 April

Zimbabwe and Zambia in tug of war over Vic Falls

GMT 16:05 2017 Tuesday ,31 October

Qadih calls for involving private sector

GMT 09:20 2017 Wednesday ,15 November

Qualcomm spurns $130 bn Broadcom bid for big tech tie-up

GMT 13:43 2017 Tuesday ,24 October

Stabbed Russian journalist 'in recovery'

GMT 10:26 2017 Friday ,14 April

Sock topples Haas to reach ATP Houston quarters

GMT 14:00 2017 Saturday ,25 November

Sudan condemns terrorist attack in Egypt

GMT 09:40 2017 Monday ,04 December

Stade down Racing, Clermont edge plucky Agen

GMT 08:08 2017 Thursday ,05 October

Injury jinx strikes again as Iordache exits

GMT 11:20 2017 Tuesday ,05 December

Prodigal son: Saleh Saudi overture tips Yemen balance

GMT 09:35 2013 Saturday ,31 August

Afghan suicide attack kills 6, hurts 20 in south

GMT 23:36 2016 Sunday ,11 December

Suicide attack in Istanbul claims 29 lives

GMT 18:29 2013 Sunday ,10 November

Samsung\'s Galaxy Note 3 top 5m

GMT 14:52 2013 Sunday ,24 November

Computer game opponents begin to think, feel alike

GMT 18:55 2012 Wednesday ,02 May

8 Secret guy insecurities

GMT 19:27 2012 Thursday ,10 May

How to win over your boss

GMT 18:27 2012 Sunday ,29 April

Why I\'m better off without a baby

GMT 13:40 2012 Friday ,25 May

Sharnoubi to make documentary on singer Warda

GMT 12:58 2014 Friday ,28 November

Incredibly small apartment in Paris

GMT 00:44 2011 Sunday ,25 December

Modern glass house

GMT 10:51 2011 Tuesday ,05 July

Dior loses its way without creative director
Themuslimchronicle, themuslimchronicle
Themuslimchronicle, themuslimchronicle
 
 Themuslimchronicle Facebook,themuslimchronicle facebook  Themuslimchronicle Twitter,themuslimchronicle twitter Themuslimchronicle Rss,themuslimchronicle rss  Themuslimchronicle Youtube,themuslimchronicle youtube  Themuslimchronicle Youtube,themuslimchronicle youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2023 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2023 ©

muslimchronicle muslimchronicle muslimchronicle muslimchronicle
themuslimchronicle themuslimchronicle themuslimchronicle
themuslimchronicle
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
themuslimchronicle, themuslimchronicle, themuslimchronicle