WeWork founder's new venture Flow expands to Saudi Arabia
What's the story
Adam Neumann, the founder of WeWork, has expanded his latest real estate venture, Flow, into Saudi Arabia.
The start-up recently launched its first properties in Riyadh, marking a significant step in Neumann's ongoing efforts to revolutionize the co-living and apartment rental sector.
This move follows his acquisition of over $1 billion worth of apartment blocks across US's sun belt, and securing $350 million funding from Andreessen Horowitz (a16z) in 2022.
Innovative model
Flow's unique approach to community living
Flow's properties are uniquely designed to foster a sense of community among residents. They feature co-working spaces, yoga classes, and hotel-style housekeeping services.
In August, the company soft-launched Flow Narjis in Riyadh, offering two- and three-bedroom apartments starting at $3,500 per month.
These apartments come with additional services like laundry and housekeeping as well as amenities such as pools, gyms, and bowling alleys.
Growth strategy
Expansion and property modifications in Riyadh
Flow has three properties with nearly 1,000 apartments in Riyadh, set to be completed by year-end. These properties were purchased in collaboration with private local investors.
The company made significant modifications to one of its buildings, Flow Narjis, removing walls that traditionally separated male and female areas in gyms.
This change was made to align the building with Flow's brand aesthetic, according to spokesperson Amy Stevens.
Business insights
Business model and Neumann's vision
Flow's business model initially puzzled many due to its ambitious vision for the future of living.
The start-up promotes ideas ranging from crypto-enabled financial services to tenants building equity with their rent.
Neumann has emphasized the importance of community and ownership in his speeches, suggesting that renters could even unclog their own toilets as a way to foster a sense of responsibility and community.
Brand expansion
Flow's 1st branded properties and tech integration
Flow launched its first branded properties in Fort Lauderdale and Miami, Florida, in April.
These locations offer medium to long-term leases at condos with an eco-friendly focus.
The company also has an app that provides a concierge-style service for guests and maintenance requests.
As part of their marketing strategy, both Florida locations are offering tenants a month's free rent as an incentive to sign leases for these high-end apartments.
Past relations
Neumann's history with Saudi Arabia and future plans
Neumann has a complex history with Saudi Arabia, particularly its sovereign wealth fund. Despite past controversies, he remains actively involved in the country's tech scene.
Last year, he was a key speaker at the sovereign wealth fund's annual "Davos in the desert" summit.
During a conference in March 2023 with his backers Marc Andreessen and Ben Horowitz, Neumann hinted at plans to expand Flow into Saudi Arabia.