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COMMUNAL OFFICES

Seats,

Then Services

Like WeWork, its big Chinese rivals don’t make a pro t from work-share space.

Kr Space founder Liu Chengcheng says growth has to come rst.

BY YUE WANG

yriad charts and igures of the latest real don’t think WeWork really understood all of these in its early
estate transactions in Chinese me- days here, which was why they were expanding slowly.”
tropolises ash across the laptop of Liu Essentially, Kr Space operates along the same lines as
Chengcheng as he talks, but one magazine WeWork. It leases oice space from developers and renovates
Marticle sits conspicuously on his immacu- them before subleasing to freelancers and companies for
late desk, marked up with bold red lines. It tells the story of 1,000 yuan ($147) to 6,000 yuan per seat a month, depending
the co-working giant WeWork. “We pay a lot of attention on the location. he local knowledge he is leveraging against
to data,” Liu said in his high-rise oice in central Beijing. WeWork can include everything from complying with build-
“Especially the data of our competitors.” ing and safety regulations and inding the best contractors to
Liu, 30, is the founder of Chinese co-working startup Kr creating oice designs better suited to China’s work culture.
Space. He’s going all out to defend his home market from Kr Space says the free beer and Ping-Pong tables ofered
WeWork, which is already in 26 countries and ush with by its rival don’t it with the heavy workloads and the gruel-
cash, having just raised $1 billion more from investors. he ing “996” schedule (9 a.m. to 9 p.m., six days a week) that’s
New York company, valued last year at $20 billion, has built become pervasive among Chinese companies. It has instead
a global brand with its industrial-chic décor, large common opted to provide no-charge add-ons like inancial and legal
areas, inspirational signs and perks like free beer and yoga consulting services.
sessions. But Liu is conident that Kr Space will come out on Kr Space oicially launched in Beijing in 2016 as a spinof
top in China because his team knows the local market better. of the now Alibaba-backed technology news site 36 Kr,
“here are so many China-speciic requirements,” Liu says. “I which Liu founded in 2011 and still chairs today. His latest
venture manages 270,000 square meters of
SPACE WARS
oice space in 11 cities across the country,
LOCATIONS/ TOTAL OFFICE SPACE as of June, while serving 40,000 members
NAME CITIES (SQUARE METERS) MEMBERS VALUATION
(the company calls them “users”), accord-
BIL
WEWORK CHINA 45/3 N/A 20,000 $5 ing to a spokesman.
UCOMMUNE 160/35 558,000 150,000 Investors are also moving in. Kr Space
BIL
1.8
will soon close another funding round
KR SPACE 40/11 270,000 40,000 1 BIL
MYDREAMPLUS 40/5 300,000 N/A N/A that should raise $200 million at a valua-
tion north of $1 billion, according to three
N/A: NOT AVAILABLE. SOURCE: COMPANIES.

18 | FORBES ASIA SEPTEMBER 2018