WeWork one of the fastest growing companies in the co-working industry, valued at $20 billion at its most recent round of funding by Softbank (2017), which increased its members by twofold between 2016-2017 and is expected to increase 100% in value this year.
The company expects to generate revenues of $2.3 billion, doubling its 2017 figure. The “Future of Work” will see many changes in the evolving habits of workers. Microsoft, IBM, Google will all help people become more efficient and perhaps, gain time to do more work in a day. Changing habits of where and how people work will continue to evolve and WeWork is banking on this change to drive its growth.
WeWork’s lofty $20 billion valuation depends largely on its ability to continue to grow at a rapid pace as the company offers trendy offices to start-ups, freelancers, and enterprises who are looking to move away from facilities and real estate management.
Acquiring Regional Players To Keep Competition Away
While WeWork’s global network and size (workspaces in 400 buildings around 83 cities in 27 countries by the end of 2018) is formidable, it can face competition in each region it operates in from local players. One such fierce competitor, Naked Hub in China, was recently acquired by WeWork. This deal comes after the acquisition of SpaceMob a Singapore-based competitor. With its deep pockets, the company appears to be adopting an acquisitive strategy to keep strong competition away.
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