#StartUptoKnow: WeWork
When your workplace becomes your community!
For anyone who don’t know “WeWork”, it might seem to them just another real estate business. But is it true? Continue reading for a very interesting success story!
How it all started
Adam Neumann and Miguel McKelvey were both raised in small communities, the former in Israel and the latter in Oregon. Their interest in creating something that resembles the unity and cooperation inside such communities, first came to life when they founded GreenDesk in 2008. Their aim was to provide various types of Eco-friendly working space equipped with recycled furniture and electricity from wind power. Two years later they sold the company to Joshua Guttman and finally started their biggest project, “WeWork”. Today, nine years since its launch, the company has 538 co-working places in 99 cities all over the world.
“WeWork” better together
Moving forward from their previous achievement, the founders of this new startup company wanted to offer something more. They felt the need to create “a world where people work to make a life, not just a living”. A place where everyone would be able to bring their “ME” and turn it into a collective “WE”.
“Make a life, not just a living!”
This philosophy is evident even in the interior design. They always mention “intentional design” for everything that happens must have a specific purpose and meaning. They care about the impact they bring to their members and their experiences.
What “WeWork” provides?
Getting finally to the point, “WeWork” is responsible for renting offices, which has already built and designed, to clients. Especially for people who struggle to find suitable space or for businesses that need motivation, it can provide a variety of unique workspace. Either they are interested in a standard private office or an upgraded version of it “Office Suites”, they can find the right choice for their needs. There is also the possibility to rent dedicated desks in a shared office or even access a “hot desk”, available in their area. Furthermore, “WeWork” gives people the chance to host their workshops, events, conferences and any kind of celebration to specifically-designed spaces.
Regarding teams consisted of 20 to 250 people, the company helps to set up independent headquarters. Clients choose a place from the available locations, how it will be designed and equipped and start immediately running. At the same time, clients can contact “WeWork” and assign them the construction from scratch of their own environment wherever they desire. Company’s experts in architecture and technology search for properties and assist in finding the right deal, designing the areas and organizing their operations.
In continuation to their vision, they have created “WeWork labs”, in order to assist corporations and startups in their effort to grow. Not only do they make available labs and offices, but also, they organize weekly events and workshops, bringing everyone together. It is confirmed that the company is ready for expansion to Europe, announcing cities like Warsaw, Hamburg, Frankfurt and London. In addition, “WeWork App” is the kind of tool members utilize to stay connected anywhere at any time. It allows people to engage themselves in conversations with other members, built a strong network, book conference rooms or working spaces.
Over the years, “WeWork” in attempt to reach every aspect of life, established its own co-companies. WeLive shares the same vision with the main company with the only difference that now apartments are being available for renting, with common areas, lots of services and the opportunity to engage in group activities. RisebyWe is a wellness club that includes spa, specific places for yoga and box to refer a few. MeetUpxWeWork is a platform where everyone is able to find information about their interests and habits or upcoming events they would like to attend. From learning a new language, joining a movement to learning how to build a mobile app, everything you need to know is there! Now, if you are interested in a career in code or data science, perhaps Flatiron School is the place you need to visit. Finally, WeGrow is the co-company initiated by Rebekah Neumann, wife of Adam Neumann and also co-founder of “WeWork”. It is a private school for kids between the age of 3–9, with a curriculum that has its roots in the Montessori tradition and aims to support the growth of their mind, body and soul.
Clients and Key Partners
As for “WeWork’s” clients, the company is collaborating with entrepreneurs, freelancers, big or small businesses, startups and community-driven professionals worldwide. Some of the most well know customers are Facebook, Pinterest, Microsoft, Spotify, IBM and Amazon. Specifically, for the last two companies, “WeWork” is handling not just offices but entire buildings. Those committed clients alongside with landlords, brokers and event planners are key partners for the start up as well.
What makes “WeWork” different?
Understanding the changes that happen in the professional world and the need for flexibility, “WeWork” promotes the idea of short-term agreements, offering month-to-month commitment. There are four types of memberships from which anyone can pick the one that suits them. Although, prices vary according to the product and its characteristics (location, type of working space), the standard membership starts from 45$ per month. All of them provide many offers and amenities, such as 24/7 building access, office supplies, global network, etc. Similarly, the pricing for the labs differs depending on the city and the country, where it is located. For example, the price for the lab in Brooklyn costs 450$ a month, whereas in London is expected to be 550 pounds/month (almost 700 USD). “WeWork’s” revenue is gathered then from rents, memberships and fees from submissions to contests, workshops, and regular payments from co-companies.
With that being said, the key activities of the company are data analysis for locations and interior design in unison with storytelling around their brand. Buildings, labs and every space required, real estate managers and designers, financial managers, software developers, and Human Resources are important resources needed when running such company. That explains the cost structure of “WeWork” which is consisted of expenses for purchasing, constructing, designing and managing all these workplaces. Salaries, taxes, equipment and amenities provided complete the list.
For more information about “WeWork”, you can visit the official website along with their official social media accounts, which are their main channels.
The Business Model Canvas of WeWork
