Moneycontrol
Get App
Last Updated : Aug 13, 2019 04:36 PM IST | Source: Moneycontrol.com

WeWork economy contributes a total of Rs 4,043 cr of GDP across Delhi-NCR, Mumbai and Bangalore

Intensive urbanization and growing population density in a few areas have made the CBDs of metropolitan India practically inaccessible over the past two decades, especially in cities such as Mumbai, Delhi and Bangalore.

Moneycontrol News @moneycontrolcom

Collaborative spaces – led by global giant WeWork’s expansion in India – are having a real impact on the concept of workspaces and therefore the economy. A new report assessing economic impact has outlined interesting insights that point to India’s work-life moving in a new direction.

Democratization of neighbourhoods

Intensive urbanization and growing population density in a few areas have made the CBDs of metropolitan India practically inaccessible over the past two decades, especially in cities such as Mumbai, Delhi and Bangalore. NITI Aayog foresees the growth of the Indian real estate sector to jump over fivefold to $650 billion by 2040. As commercial real estate become more expensive, flexible workspaces are democratizing access by reducing the prohibitive barrier of price. This is re-injecting vibrancy to these locations and enabling businesses and individuals to benefit from proximity to business areas. In fact, the report found that 76% of WeWork members in Mumbai, 74% in Bangalore, and 67% in Delhi and did not work in the neighbourhood prior to joining WeWork.

This has also had an impact on associated activities in these areas; 9-15% of WeWork members have moved closer to the WeWork location since joining, especially in Bangalore where 1 in 4 (37%) members visit neighbourhood restaurants, cafes and businesses daily. In Bangalore, the WeWork economy directly contributed INR 1,957 crore and in total supports INR 2,002 crore (INR 44 crore indirectly) of GDP in the city.

Mumbai comes next in terms of impact, where the WeWork economy directly contributed INR 1,692 crore of GDP and in total supports INR 1,737 crore (INR 45 crore indirectly) of GDP in the city. In Delhi, the WeWork economy directly contributed INR 298 crore of GDP and INR 62.7 crore indirectly, resulting in a whopping INR 304 crore GDP impact.

Close
Knowledge workers, entrepreneurs are the biggest beneficiaries of coworking revolution

Growing automation is driving a shift towards knowledge work, and these contributors are the biggest beneficiaries of the growth of collaborative workspaces. Flexibility and low capital commitment helps encourage entrepreneurship, with 17% of Mumbai WeWork entrepreneur-members, for instance, pursuing their first startup project at WeWork.

Likewise, over 77% of WeWork members in Bangalore are in the innovation economy, and a fifth of WeWork member-entrepreneurs are taking the plunge to self-employment for the first time. In Delhi, 53% of members are in the innovation economy while 11% of entrepreneur-members are first-timers.

Flexible working correlated to the rise of women in leadership roles

The flexibility, access and convenience that collaborative workspaces offer have an impact on women rising to leadership positions, and India’s WeWork members are ahead of the curve.

Led by Mumbai, where a significant 41% of senior roles (executives, senior managers, managers and sole proprietors) are held by women, followed by Delhi (29%) and Bangalore (26%), India is far ahead of the rest of Asia, where the percentage is at 23%.

Companies grow faster with better collaboration, global access

Across cities, collaborative working has had a direct impact on company growth, with 65% members in Bangalore and 58% in Delhi stating that WeWork has helped accelerate growth. This is especially true among small and medium companies, who benefit from the national and international network of member companies, ease of collaboration and world-class infrastructure access. In fact, the average growth rate across SMB WeWork members in Bangalore is 25% compared to 4% for all companies in the city. The difference is even starker in Mumbai, where SMB WeWork members have grown at 37% on average compared to 2% for all companies in the financial capital.

Flexible workspaces more efficient, sustainable

Easier access to flexible workspace has also increased the viability of sustainable forms of commute, including walking, biking or public transport. In Bangalore and Mumbai, over half of WeWork members use sustainable public transit modes. Members also tend to switch from self-driving to sustainable public transit, with 15% in Bangalore and 25% in Mumbai reporting that they’ve done so since joining WeWork. In Delhi, over 60% of members use sustainable transit options and about 29% have given up polluting cars since joining WeWork.

Karan Virwani, Co CWeO, WeWork India says, “WeWork as a community enables its members to collaborate with each other, which has led to the creation of efficiencies in terms of increased creativity, productivity at the workplace and innovation. This process has effects that go far beyond individual considerations as it also sparks the development and support of local communities, neighbourhoods and businesses, a culture that we as an organisation look to actively imbibe, encourage and promote. This is true for WeWork across countries around the world and in India.”

About the Global Impact Report

WeWork has published its Global Impact Report by partnering with HR&A Advisors, an industry-leading economic development and public policy consulting firm, to track and delineate the effects its community has had on various stakeholders. HR&A focussed on the impact of WeWork on People and Businesses, Neighbourhoods, Entire Cities and the overall Greater Impact on its member community as well as the local communities it is currently engaged in.

 

For more information, visit: wework.com

In a separate sheet, send the below as an attachment:
The key findings of this report include:

WeWork encourages women in leadership

● Bangalore

○ 26% of all senior roles (executives, senior managers, managers, and sole proprietors) at WeWork member companies are held by women, compared to 23% of those roles held by women in Asia.

● Delhi

○ 29% of all senior roles (executives, senior managers, managers, and sole proprietors) at WeWork member companies are held by women, compared to 23% of those roles held by women in Asia.

● Mumbai
○ 41% of all senior roles (executives, senior managers, managers, and sole proprietors) at WeWork member companies are held by women, compared to 23% of those roles held by women in Asia.

WeWork creates jobs

● Bangalore
○ The average growth rate across small and medium-sized WeWork member companies in Bengaluru is 25% compared to 4% for all companies in Bengaluru.
○ 65% of WeWork members say WeWork has helped their company accelerate its growth

○ WeWork economy directly contributed INR 1,957 Cr of GDP and in total supports INR 2,002 Cr (INR 1,957 direct and INR 44.24 Cr indirect) of GDP in the city

● Delhi
○ 58% of WeWork members say WeWork has helped their company accelerate its growth

○ WeWork economy directly contributed INR 2,986 Cr of GDP and in total supports INR 3,049 Cr (INR 2,986 Cr direct and INR 62.7 Cr indirect) of GDP in the city

● Mumbai

○ The average growth rate across small and medium-sized WeWork member companies in Mumbai is 37% compared to 2% for all companies in Mumbai.

○ WeWork economy directly contributed INR 1,692 Cr of GDP and in total supports Rs 1,737 Cr (INR 1,692 Cr direct and INR 45.36 Cr indirect) of GDP in the city

WeWork boosts local economies

● Bangalore
○ 74% of WeWork members in Bengaluru did not work in the neighbourhood prior to joining WeWork, bringing more activity and spending at local restaurants and shops.
○ 12% of WeWork members in Bengaluru have moved closer to their WeWork location since joining.

○ 27% of WeWork members, visit local neighbourhood restaurants, cafes and businesses daily

● Delhi
○ 15% of WeWork members in Delhi have moved closer to their WeWork location since joining.
○ 67% of WeWork members in Delhi did not work in the neighbourhood prior to joining WeWork, bringing more activity and spending at local restaurants and shops.

○ 13% of WeWork members visit local neighbourhood restaurants, cafes and businesses daily

Mumbai
○ 76% of WeWork members in Mumbai did not work in the neighbourhood prior to joining WeWork, bringing more activity and spending at local restaurants and shops
○ 9% of WeWork members visit local neighbourhood restaurants, cafes and businesses daily

WeWork drives innovation economy

Bangalore
○ 77% of WeWork members in Bangalore are in the innovation economy

○ 19% of WeWork members who are entrepreneurs in Bangalore are first time entrepreneurs

Delhi
○ 53% of WeWork members in Delhi are in the innovation economy

○ 11% of WeWork members who are entrepreneurs in Delhi are first time entrepreneurs

Mumbai
○ 53% of WeWork members in Mumbai are in the innovation economy
○ 17% of WeWork members who are entrepreneurs in Mumbai are first time entrepreneurs

WeWork supports sustainability

Bangalore
○ 50% of WeWork members use sustainable form of public transit (walk, bike, public transport)

○ 15% of WeWork members who used to drive by themselves to work have switched to using more sustainable form of transit since joining WeWork

Delhi
○ 60% of WeWork members use sustainable form of public transit (walk, bike, public transport)

○ 29% of WeWork members who used to drive by themselves to work have switched to using more sustainable forms of transit since joining WeWork.

Mumbai

○ 55% of WeWork members use sustainable form of public transit (walk, bike, public transport)○ 25% of WeWork members who used to drive by themselves to work have switched to using more sustainable forms of transit since joining WeWork.

Subscribe to Moneycontrol Pro and gain access to curated markets data, trading recommendations, equity analysis, investment ideas, insights from market gurus and much more. Get Moneycontrol PRO for 1 year at price of 3 months at 289. Use code FREEDOM.
First Published on Aug 13, 2019 04:29 pm
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant