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Highs, lows of coworking space in sharing era
Studies show that the coworking industry grew from 70 people in 2007 to an average of 1.5 million worldwide in 2017, and the figure is projected to reach 5 million by 2023.
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Creative environment: Millennials share ideas at Greenhouse Coworking Space in Multivision Tower, South Jakarta. The coworking space has been designed in such a way that it stimulates a creative work environment. (The Jakarta Post/Dhoni Setiawan)
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wift technological developments are continuously transforming the relationship between assets, spaces and economic activities. Spearheaded by the ride hailing app Uber and Airbnb renting space, the rise of sharing and collaborative forms of the economy is innovating the way people consume services and products and our lives in general. A more recent phenomenon is the coworking space.
Their innovation is in the value propositions of hot desks and open spaces, all based on a flexible or short-term lease. Flexible office spaces also create a sense of community, sharing knowledge and facilitating innovation among all their members. Subsequently, coworking also affects socioeconomic, commercial and urban aspects. However, there is still little to no evidence of the economic viability of the industry and its social effects.
Studies show that the coworking industry grew from 70 people in 2007 to an average of 1.5 million worldwide in 2017, and the figure is projected to reach 5 million by 2023. There is a new wave of coworking start-up businesses such as WeWork, ImpactHub, SpaceHub, and some Indonesian coworking start-ups such as CoHive, Conclave, Kolega etc.
They are all now attempting to challenge the commercial property market and respond to the changing nature of the workplace. Coworking facilitators have taken advantage of the freelance trend and there are more venture capital fund start-ups that need renting contract flexibility. WeWork is now the largest tenant in several major big cities — London, New York, Washington DC, etc.
WeWork, which is in the spotlight today, managed to create a brand and position the company as the leader of this social and urban change. Established in 2010, by 2018, the company operated over 30 million square meters of space globally in 528 locations across 29 countries.
WeWork became famous for providing a glimpse of professional paradise for its members. They offer free cereal and coffee, ping pong, among other things — perks and facilities designed to encourage interaction.
However, WeWork came under fire recently, after drastic valuation cuts from US$47 billion to merely between $10 billion and $20 billion. The chief executive officer, Adam Neumann, has stepped down from his post and lost his majority of votes. To top it all off, WeWork delayed its initial public offering plan.
