United States based startup engaged in the business of promoting office sharing through its app – WeWork is not eyeing to expand its business into Southeast Asia.
The company is based in New York and has come to be identified because of its large and spacious buildings that house private offices and desks which it gives out on rent to third parties. The company first entered the Asian market by setting up a branch office in Singapore last December. The company has since then opened up seven its offices and renting space in seven more locations in the city-state apart form also opening up three rental office spaces in the Indonesian capital of Jakarta.
While the company is set to soon add on more office space and buildings in Singapore, its nest market where it would start operations would be Bangkok, said WeWork Managing Director of Southeast Asia Turochas “T” Fuad to a television channel. He also hinted that after Bangkok., the company could start business in the cities of Manila and Kuala Lumpur and buildings could come up in these cities soon as well.
The US firm already has developed a strong presence in other parts of Asia. In 2016, the company set up shop in China and in South Korea and entered the Indian market a year later.
Strong demand for rented office space in Southeast Asia was the driving force behind the ambitious plans of the company, said Faud while speaking at a technology conference called InnovFest Unbound.
“The whole concept of urbanization, the whole sharing economy concept is definitely migrating towards the commercial sector,” he said. He added that the clients of the company for office space in Asia composed of a mixture of both local start-ups as well as a international companies.
He also noted that South East Asian locations are being chosen by more Chinese and Indian companies to open up offices.
In recent years, South East Asia has seen a phenomenal increase in rates of mobile and internet penetration which has hastened the pace of the development of a large number of start-ups here – especially in the e-commerce segment.
In addition to the co-working space, WeWork is also looking to venture in to other related areas. As a process of diversification of its business the firm is also taking measures to venture into new allied businesses such as in designing, building and operating offices for major corporations. The company has termed this venture as “Powered by We.”
Fuad said that WeWork is opened up for global enterprises by this program of “Powered by We”. He showcased the company working for Standard Chartered in Hong Kong.
“Ultimately, large companies want to be as nimble as start-ups.”
(Adapted from CNBC.com)