Develop WeWork like app or Airbnb for office app and be unique ‘modern real estate company’ rather than being a boring tech company
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After reserved funds, all entrepreneurs are wishing to have a nice place where they can work efficiently, without vexing themselves due to office supply, insurance, and maintenance of the space.
Adam Neumann and Miguel McKelvey were the first entrepreneurs who heard the unsaid wish of all other entrepreneurs. They launched a company named WeWork which enables startups to lease the co-working spaces and office spaces for a limited time. The idea of Airbnb for office business was so successful that currently WeWork is valued at around $47 billion.
In this blog, we will talk everything about WeWork in a very comprehensive way. We will also discuss the cost to develop a co-working space app like WeWork and how as a real estate startup, you can double your revenue with WeWork like business model and app.
Insight into WeWork
According to the Harvard Business Review article, WeWork is not a tech company, but it is a modern-day real estate company that was founded by Adam Neumann and Miguel McKelvey in 2010 after selling their previous startups named GreenDeck.
WeWork provides office spaces for lease to entrepreneurs and startups. It does not only provide office spaces, but customers are also rewarded with free internet, beer, and snacks. In fact, insurance and maintenance of the office spaces are also taken care of by WeWork. This is how WeWork has become the first choice of those entrepreneurs who don’t want to get distracted while running their dream startup.
As of now, WeWork’s ‘modern real-estate business’ is available in 111 cities across 29 countries with more than 5 million members.
Business journey and funding history of WeWork
- In 2010, after starting an on-demand co-working space providing company, Neumann and McKelvey bought a property in New York’s SoHo district and rented it out. This was the first property of the WeWork.
- In 2011, PepsiCo placed its few employees at the SoHo district property of the WeWork.
- By 2014, WeWork managed to buy and rent many properties across New York. As a result, it was considered as “the fastest-growing lessee of new office space in New-York.”
- Till then, WeWork has successfully attracted top-notch investors like J.P. Morgan Chase & Co, T. Rowe Price Associates, Wellington Management.
- As of 2015, WeWork owned 51 co-working office spaces across the USA, Europe, and Israel.
- On March 9, 2016, WeWork has raised a whopping $433 million at the valuation of $16 billion.
- As of October 2016, WeWork has seized $1.7 billion in private capital.
- In 2017, Softbank has invested over $1 billion in this office space app providing company. The same year, they have launched stores for services and software for their users or members.
- In March 2018, WeWork has raised more $400 million alongside a private equity fund.
- In January 2019, WeWork company changed its name to We Company. During the same month, Softbank invested more $2 billion in it.
- In April 2019, the company filed for an IPO.
- The business model of WeWork
WeWork is an office-leasing company, following a very straightforward business model. The major percentage of their revenue comes from the rent of the offices. However, they have branched out the simple renting service into three sub-services. These are office renting service, dedicated desk renting service and hot desk renting service.
Through office rental service, WeWork rents out a whole office to a startup. This is the most expensive renting service of WeWork. In a dedicated desk renting service, they rent out a dedicated desk of an office to a freelancer or a single entrepreneur. Whereas, they allow anyone to use only available desk if he opts for a hot desk renting service.
Moreover, WeWork which has been quoted as a modern real-estate company and not a tech company is earning a lot by an office-flipping business. It buys a good space at a profitable location and after renting it for quite a good time, it sells it and makes a healthy profit. If the property is not good enough to make WeWork profitable when they resell it after few years, WeWork prefers to acquire a long term lease of it from the owner and keep renting out that property until they break-even for particular that property only.
Why WeWork like office space app and Airbnb for office business work?
If you are still having cold feet over the thought of developing WeWork like app and starting an Airbnb for office business, here are the top reasons depicting why developing a co-working space app like WeWork or running Airbnb for office business is a safe bet.
» WeWork like app is actually solving a major problem
As discussed in the first paragraph of this blog, WeWork like co-working space app is solving one of the major problems of the entrepreneurs – having a workplace where everything is taken care of by a company – so that entrepreneurs can focus on their work.
» The very large user base
Needless to say, the major user group you can target is entrepreneurs. And guess what? There are close to 400 million entrepreneurs worldwide!
» It is a modern real estate business
Harvard Business Review report states the right thing – WeWork like business is a modern real estate business. If we understand this statement in a broader business term, it means that even if you fail to acquire a large number of users, you can make good money by just buying and selling the offices. And if you acquire a good number of users, it would be your second revenue stream!
After reading so far, if you are thrilled to develop WeWork like office space app and jump into Airbnb for office business, you have to pay extra heed at the feature set as it defines the user experience. By a lucky chance, we have covered it here.
Top features of WeWork app which we provide into your WeWork like Airbnb for office app
- WeWork app lets anyone search for office places by location and by team size.
- WeWork app shows the pricing for its all three renting services: office rental, dedicated desk rental and hot desk rental.
- WeWork app lets you share your experience with the community of creators.
- It enables you to make professional connections and find your next client.
- The app is equipped with the personal messaging feature.
- You can book the conference rooms by the half-hour.
- At supported WeWork buildings where they keep the snacks, you can buy it by scanning the printed code from your app.
- WeWork app lets you submit a support request for anything you need.
- And most importantly, it has the dedicated module from where you can track your leasing term and amount.
How much does it cost to develop an app like WeWork?
Coruscate is the top android app development company that entertains several numbers of queries related to developing apps like Airbnb. We accommodate 100+ highly trained developers and designers who work closely with the research team to bring innovation into your app. In addition to robust app development, we become the business strategic partner with our clients and help them to get everything out of the market.
With our rapid app development technology, we can develop WeWork like app within 45-55 business days and under $10k.
To know more about app features, market possibilities, profitable business model and app marketing tactics, please contact our app scientist and business expert.