WeWork Business Conditions and Strategies in Facing Changing Work Styles Due to the Pandemic

Operator co-working space global WeWork has officially opened its presence in Indonesia since 2018, after one year earlier acquire Spacemob. Based on information obtained from the official website, they currently operate services in 4 locations in Jakarta.

Unfortunately, changes in trends and work styles due to the pandemic have also affected the industry. One of them revealed the results of the ResearchAndMarkets report in June 2020, the global market co-working space estimated to fall from $9,27 billion in 2019 to $8,24 billion in 2020 at a CAGR of -12,9%.

In the next one-year report by the same research firm, the market is expected to grow from $7,97 billion in 2020 to $8,14 billion in 2021 at a CAGR of 2,1%. The growth was due to service operators continuing to operate and trying to adapt to the new normal, in the midst of recovering from the impact of the pandemic [including vaccination]. Its potential is estimated at $13,03 billion by 2025 at a CAGR of 12%.

WeWork business during the pandemic

WeWork's business resilience during the pandemic is bolstered by over 50% of its members who have more than 12 months of [lease] commitments, contributing to an average full commitment period of more than 15 months to their workspaces. It's now noted that WeWork has returned to its pre-pandemic performance, recording sales netdesk strongest in April and May since September 2019.

"We recorded sales netdesk positive in all regions consolidated, demonstrating the nature of the global recovery and accelerating demand for solutions that hybrid at WeWork. Across our global portfolio, WeWork's workspace occupancy rate continued to increase to 53% at the end of May," said Monica Wulff, Head of WeWork Labs Australia, SEA & South Korea. DailySocial.id.

For the Southeast Asia region, WeWork is seeing increasing interest as companies begin planning long-term and more sustainable workplace strategies. While smaller businesses are also opting for more flexible workspace arrangements, compared to traditional workspace commitments.

This is evidenced by an increase of almost 10% in the corporate segment for WeWork in Southeast Asia. Across the region, WeWork has recorded renewed commitments and new commitments from companies such as OPPO, Thales, Payoneer, Affinidi, Indepay and Katalon," said Monica.

Launched the "Growth Campus" program

Aiming to support the startup industry ecosystem and continue to innovate during the pandemic, WeWork launched its first "Growth Campus" in the UK earlier this year. The initiative has now been extended to Australia and Southeast Asia, including Indonesia.

Growth Campus is a community resource-sharing. It is hoped that through this innovation, WeWork can create strong partnerships with all the startup ecosystem players (startup programs, investors, developing companies) that join. To support this program, WeWork invested nearly $8 Million in workspace subsidies, mentorships, and education throughout Southeast Asia.

"As we adapt to circumstances, WeWork has played an important role in many of the company's growth strategies and as Covid-19 continues to impact the economy and disrupt the way we work, we see a need for networks and workspaces to help businesses grow."

For startups that can join, at least they are in the early stages that have been established in the last 5 years with less than 20 employees. In addition, their startups have been self-funded with turnover above $75 thousand or have raised external capital including series A.

"Participants must sign a WeWork Membership Agreement to commit to having a workspace for 6 to 12 months, and not to enter or participate in other WeWork offers or promotions," Monica said.

Meanwhile, regarding the curriculum, WeWork Growth Campus provides them with WeWork's global digital platform called WeWork Labs. Through this innovation, they will be given education and guidance with thousands of professionals and experts in a format one-on-one, roundtable setting, and global webinars.

WeWork Labs also provide the resources they need to advance their business, such as on-demand learning (on-demand learning), community of founders, and wellness & personal development.

"We also provide participants with educational programs tailored to meet the personal and professional development needs of our members. Curricula are developed and facilitated in partnership with our network of mentors and experts," says Monica.