Just months after WeWork’s massive failure to go public, its main competitor in China is looking to carry out its rival’s defeat to the surprise of many analysts and investors.
Despite having a very similar business model, Ucommune has succeeded in something that WeWork struggled with — tech.
One of WeWork’s biggest criticisms was its self-proclamation of being a tech company in order to inflate its valuation. In reality, WeWork was mostly a real estate company.
Mao Daqing, founder of Ucommune, found success in 2015 after serving in roles at Vanke and CapitaLand which has catapulted his ability to merge coworking and technology.
Ucommune’s offices encapsulate something out of a sci-fi film — facial recognition, Bluetooth door locks, IoT tables and a user-friendly mobile app. The company encourages in-house innovation and acquires companies with a promising future. All of this in consideration could give Ucommune the edge it needs to shake off the WeWork effect.
Still, while Ucommune could have a clear path to victory to its IPO, the company’s loss to income ratio is more than WeWork’s was. For every $1 of income Ucommune makes, it loses $.64 compared to WeWork’s $.59. In order to truly set itself apart from competitors, it needs to keep expanding its digital footprint.
