In another shared economy consolidation, two coliving firms will merge in an effort to achieve profitability.
New York-based Common and Berlin-based Habyt will come together to create Habyt Group, giving the newfound company a portfolio of around 11,000 coliving spaces around the world.
Habyt takes a more classic coliving approach, signing long-term leases then subleasing out their shared living spaces to tenants. However, Common uses a management-agreement model, allowing them to split revenue with landlords.
According to Luca Bovone, co-founder of Habyt and CEO of Habyt Group, merging the two companies will help alleviate increased costs by reducing overhead expenses.
The shared economy, which includes coliving and coworking alike, has faced a slew of hurdles in the post-pandemic era. While these environments are certainly seeing demand from professionals and are ideal for slashing costs, the lack of profitability makes any gains moot.
