At present, most of the domestic shared offices are the asset-heavy profit model of leasing office areas, which puts a lot of pressure on the company's cash flow. This capital-intensive industry has a huge demand for capital, and after the failure of the shared office giant WeWork to go public, similar projects have encountered the problem of sharply shrinking valuations, and the capital market has also questioned the entire shared office industry. Due to the distrust of capital in the shared office industry, many companies have encountered many obstacles in the process of seeking listing. For example, Ucommune has experienced twists and turns in the listing process. Ucommune has been established since April 2015. Its industrial model is very easy to understand.
In short, it is to sign a long-term contract with the property owner, renovate it and then sublet it to individuals or small and medium-sized Fax List enterprises. At the same time, through better informatization Management means for operation and maintenance. This easy-to-understand model should have been easily recognized by the market, but the listing process of Ucommune has been so tortuous, which is naturally inseparable from the skepticism of the market, but the more important reason is that Ucommune The problem of the factory itself. Ucommune has raised more than 5 billion yuan in financing but is still at a loss.
Although Ucommune said that its losses mainly come from investments for business development, the fundamental reason for Ucommune’s losses is that it has been merging and expanding, burning money for scale. As of October 2019, Ucommune has covered 42 cities including first-tier and new-tier cities in China and Singapore. So far, Ucommune has sounded the clarion call for listing. However, these problems are not unique to Ucommune, and they are common to the entire shared office industry, and this kind of problem also furthers the market's suspicion of the shared office field.