Weworktenaciously together

GSBCONSULT^

The University of Cape Town Graduate School of Business

Value Proposition

Digital

Staff and activation

Physical Space

Core competencies are aligned with expansion

Varies by member segment, enabled by:

You know what members needs in their space

You know the experience needs to be felt

You know tech

Assumptions

• Africa population and economy will continue to grow• Urban migration will continue • Intercity and international commuting will continue into the future

Mandate

Provide an integrated growth strategy to expand product offerings into existing and new markets

Sharing the wework mission and bringing

co-living and co-working to the next level

Recommendations

Grow | Expand | Seed | Mission

Take weworkto Africa:

weworkUBUNTU

Product augmentation:

westay

New Product:

wegrow fund

1 2 3

Business Model

Millennials and Start-ups bring in the vibe, which attracts Enterprises who bring in $$$

Criteria Millennials Start-ups Small businesses Professionals Enterprises

Value Proposition

• “Vibe”• Networking

• Network• Cost

• Network• Cost

• Client space• Cost

• Flexibility• Cost• Employee

satisfaction

Revenue & Profit * ** ** *** ****Culture –Community,Connection

**** *** *** * *

Memberapproach

FriendsSocial

Online Small business networkOnline

Relevant trade mags

ConferencesOnline

Small business publications

EventsConnections

Product Member Hot deskMember

Dedicated deskPrivate office

MemberPrivate office

Dedicated deskPrivate office

Market analysis – Where are you now?

Not yet in Africa

• Start – up hubsREGION

• San FranciscoAmerica

• BerlinEurope

• Tel AvivMiddle East

• Mexico cityLatin America

• ShanghaiAsia

• Cape Town, Nairobi, Accra, Lagos …Africa

Why Africa?

Africa is a lucrative, untapped market

Cultural fit

Community & family focused

Entrepreneurial culture

Economic indicators

Healthy & growing

Real estate costs low

Ecosystem

Relatively unregulated eg.

UBER

Limited infrastructure

Space – Design, Accessible

Need to share learnings

Need for cost effective options

Requirements for entering a market

Africa

Other customer needs

Opportunity for more complete customer offering

Place of stay

Place of work

welive

wework

HOME CITY

Travel Place of stay

Place of work

Airbnb Hotel

welive

DESTINATION

Business cycle

How to continue exponential growth rate?

Start Up

Growth

Plateau

Decline

Innovate

or

Die

wework

Growth maximizing options

wework spaces are ideal for identifying promising start-ups

Expertise required Capital required Speed Feasibility

Option 1:New product offerings

Internal Variable Slow Medium

Option 2: Acquire new companies

External Low cost at seed phase Fast High

Options 3: New Markets internal High Slow High

Key Opportunities

Significant options in new markets and existing markets

Africa is an untapped lucrative market

Opportunity for product extension

Access to promising start ups

1 2 3

Alternatives Options

Evaluation Criteria welive expat weplan space design consultancy

Market size of opportunity

Leverage competitive advantage

Strategic value

ROI

Do not deliver on the growth needed in the immediate future

Recommendations

Grow | Expand | Seed | Mission

Take weworkto Africa:

weworkUBUNTU

Product augmentation:

westay

New Product:

wegrow fund

1 2 3

Implementation - westaywestay floor – 100 / floor

wework floor westay offering: Basic pod offering bed, light,

cupboard

• Simple• Basic• Encourages community

activity• 60-100 dollars

Implementation – westay marketing

Push sales through in app

Mobile app notifications and in app purchasing

Location dependent messaging

“Looks like you are traveling, want to book a westay?”

“working late, why don’t you go get

into bed”

Travel to another wework office

Implementation – westay timeline

0-3 months

Select pilot city-NYC-Chicago-LA

3-6 months

Secure leaseOutfit buildingMobile app development

6-12 months

In app marketing events

KPI: increased sales and occupancy

Implementation – weworkUBUNTU pilot

Target entrepreneurial hotspots and spread wework mission

0-3 months

Set up Africa team Identify sitesLease office space

3-6 months

Design and construction (300K USD)Staff recruitments

6-12 months

Recruit companies and host events

Africa roadmap:

Megacities:1. Phase 1: Cape

Town and Joburg2. Phase 2: Kenya3. Phase 3: Nigeria,

Ghana, Cairo

Implementation – weworkUBUNTU

Subsequent years have 4 location launches min

Building Cost:• Set up building: 300K USD

Marketing:

• Outdoor and online (100K USD phase 1)• Regular events in wework space

Implementation - wegrowValue for Startups

wework funds start-ups in exchange for) equity

• Wework offers:• Business support• Mentorship • funding (10-100K USD /

case )

KPI: growing balance sheet and maintaining culture

Process to find startups• Call for mentors• Call for start-ups• Vet applicants • Invite to pitch • Select ten teams • Invite into wework

space

Incubation space in wework

10 teams

wework mentor program

Financials

Most investment to wegrow

Costs (USD Thousands) 2017 2018 2019 2020 2021AfricaBuildings Rent 300 600 1200 2400 5400Buildings Outfitting 150 150 300 600 1200Marketing 100 120 140 160 180Staff 100 100 200 400 800Total Africa 650 970 1840 3560 7580

WeStayPods Rent 200 500 1100 2300 5000Pods Outfitting 100 250 550 1150 2500Development Cost 250Total WeStay 550 750 1650 3450 7500

WeGrowInvestment into Startups 10000 20000 40000 80000 160000Staff 500 800 1300 2500 4000Total WeGrow 10500 20800 41300 82500 164000

Total Cost of Plan 11700 22520 44790 89510 179080

Financials – profitability

Adding 440M USD to revenue PA by 2021

Revenue (USD Millions) 2017 2018 2019 2020 2021Africa 1.4 2 4.2 9 20WeStay 1.1 1.5 3.5 8 19WeGrow 5 20 85 170 400Total of Plan 7.5 23.5 92.7 187 439

Critical Success Factors

Start up due diligence

Africa local knowledge

Westaymarketing campaign

Know you market | learn where you are new | spread your mission

Conclusion

GROW deeper into existing markets

LEARN about new markets

SHARE the wealth

LIVE YOUR MISSION