Posts by Melody Hahm

I checked out WeWork's 'communal housing,' and now I'm considering a move

I thought my college years were behind me. But I’m seriously reconsidering the dorm life since visiting Manhattan's first-ever location of communal living startup WeLive. WeWork, the $16 billion company that’s disrupted office life, is trying to do the the same for your apartment in two locations so far: downtown Manhattan and Crystal City, Virginia. Of course, the concept of communal housing isn’t novel. But WeLive aims to combine the best aspects of dorms, boutique hotels and apartments, and it charges up to $2,800 a month for this unique living situation. If you’ve ever stepped into a WeWork, there’s an inviting, modern, minimalist aesthetic that’s been infused into WeLive, too. When I first heard about WeLive, the image in my mind was far from glamorous. I imagined tenants living on top of each other, fighting to use communal bathrooms and kitchens. But this isn’t your typical dorm situation: You have your own apartment but get access to a chef’s kitchen, yoga studio, conference room, laundry/arcade room, and neighbors who actually want to talk to you. After seeing the space and all of these amenities, I must admit: I’ve had a change of heart. Most importantly, each apartment unit has its own bathroom and kitchen — so you can be by yourself whenever you want. This is a huge thing for me because I enjoy my alone time and need a break from people (who doesn't?). And they don’t check your credit or charge a broker’s fee. The layouts in WeLive’s 400 units range from small studios to four-bedrooms, and all apartments come fully furnished. Per-tenant pricing begins at $1,375 but if you want a bit more privacy, you’ll have to dole out at least $2,000 per month. The most common setup is the “studio plus,” which comes with two beds (one is a Murphy hidden in the wall); these range from $2,500 to $2,800. A flat monthly utilities payment of $125 covers electric, water, cable, wifi and cleaning costs (yes, housekeeping is included). When I visited WeLive, I spoke with 26-year-old entrepreneur Tiffany Tibbot who moved there in March and finds the community enriching and inspiring. Despite having lived alone for the past five years, she opted for a four-bedroom at WeLive in order to save money and meet new people. “The community building reminds me of college,” she said. “It’s like a safety net.” Despite the many communal offerings, she says there’s no pressure to constantly mingle and network. “I can still be independent and in my room,” she said. “But if I want to experience the community, then I can engage freely at any time.” There’s a laundry room with ping pong and pool tables, arcade games and beer on tap. Members do have to pay for laundry — $2 for a wash, $2 for a dry. And there’s an unmanned “honesty corner” with toiletries for sale. Members use their WeLive app to pick up a bottle of shampoo or a tube of toothpaste if they’re running low and are feeling too lazy to run to Walgreens (WBA). Essentially, WeLive wants to be your one-stop shop for anything you need. “Our goal is to be on par with other things in this area but to offer a higher level of service,” says Miguel McKelvey, co-founder of WeWork. You can rent out apartments for a few days, a month-to-month basis or commit to a year-long lease. So despite the suggestion that you’ll be a part of a larger community, you’ll be rubbing elbows with a fair share of transient travelers. The WeWork phenomenon Founded in 2010, WeWork started with the mission to disrupt the office space by renting out desks and full offices in hotspots around the world. This office 2.0 provides not only a place for freelancers, entrepreneurs and small businesses to set up shop but also tries to create a community by organizing events like rooftop parties, entrepreneur talks and powerpoint karaokes. There are 101 WeWorks in 29 cities, with 30 locations in New York alone. Unlike other fledgling startups, WeWork is actually profitable. Although it doesn’t disclose financials, tech news site The Information obtained internal documents and found that WeWork had $75 million in revenue in 2014, with $4.2 million in profits. The company raised its latest $430 million round of funding from Chinese investors and has been plotting aggressive expansion into Asia. WeWork plans to open three locations in Shanghai next month and will enter Hong Kong, Seoul and Sydney later this year. With only two locations so far, it’s hard to consider WeLive a needle-mover in the larger context of WeWork’s business model. Regardless, McKelvey emphasizes that it’s not a side project and hopes the two will become more equal in the long run.   “We’re deeply invested in WeLive because we know there’s something special that we’ve created. But from a business perspective, it’s hard to ignore the fact that WeWork is incredibly successful,” he says. “We have a machine that is incredibly efficient at developing those projects.” In fact, the first six floors of WeLive’s Manhattan location, 110 Wall Street, are actually WeWork space, while floors seven through 27 are all WeLive apartment units. When asked where the next WeLive location will be developed, McKelvey suggests he’s in no hurry because of the complicated nature of leasing an entire building (WeWork does not own any of its properties): “Nothing is specifically pending but we’re literally looking in all parts of the world.” Operationally, it’s much easier to stay domestic, but he’s looking at Israel and major European cities like London that are going through a housing crunch, he says. “The opportunities are there but it takes just the right moment and the right building.” Of course, WeLive could just end up being filled up with WeWorkers who want to sleep where they work and vice versa. It's certainly not for everyone, but it could potentially be the best of both worlds — having the convenience of community but only when you want it.

The incredible commercial power of Snapchat summed up in one slide

Some folks may not recognize it, but brands are getting tons of everyday consumers to advertise their goods for free. And they’re doing it through popular apps like Snapchat. Take slide 83 from Mary Meeker’s annual Internet trend report. The longtime tech and venture capital analyst pointed out that branded lenses are increasingly applied by users. For example, Taco Bell’s ( YUM ) Cinco de Mayo lens reached 224 million people on Snapchat. The Super Bowl lens sponsored by Gatorade ( PEP ) on February 7 garnered 165 million views on Snapchat, according to Meeker. Snapchat has already surpassed Twitter ( TWTR ) in daily active users. 150 million people use the social media app every day, according to Bloomberg. That’s 150 million people who are playing around with various filters to send their ephemeral selfies. Between 10 and 20 million Snapchat users view live stories each day. More users watched the MTV video music awards on the platform than on TV (12 million people watched MTV’s live Snapchat story while only 9.8 million tuned in to the broadcast), according to Meeker. Last fall Snapchat bought selfie animation app Looksery, which powers the various lenses that have you vomiting ...

Taxes and activism won’t hold back the world’s hunger for sugar

The UK will likely hit the sugar industry hard with a proposed tax targeting high-sugar drinks like Coca-Cola and Red Bull in an effort to end obesity, and other countries like Hungary and France have already imposed so-called sugar taxes. Meanwhile, nutritionists and even celebrity chefs like Jamie Oliver have repeatedly attacked sugar as empty calories that cause grave health problems. Despite the negative press, demand for sugar around the world has actually increased over the past 35 years, as the middle classes in Africa and Asia have grown significantly during this period, according to a new report from HSBC. “We do not expect sugar taxes and activism to move the needle in global demand,” the report stated. The sugar industry is without a doubt a sector driven by the emerging markets like Brazil, India and Thailand — these three countries actually account for 43% of global production and 65% of sugar exports. In 1960, North and South Americas and Europe accounted for 80% of global sugar consumption; today it’s merely 40%. Here’s why emerging markets are driving sugar growth: As a country gets richer, its citizens also tend to consume more guilty pleasures, including sugar and alcohol, according to HSBC. Per-capita consumption of sugars and sweeteners peaks among these developing countries when per-capita GDP reaches $10,000 and rises rapidly in the development preceding this point.

Europe has a huge problem with American tech giants

This week, American tech giants Alphabet ( GOOG ), Amazon ( AMZN ) and Netflix ( NFLX ) have had their omnipotence seriously challenged — in Europe. As the American market becomes increasingly saturated with so many players in the space, it’s not shocking these tech giants would encroach on European territory. But regulators are pushing back. Here’s a breakdown of the hurdles Google, Amazon and Netflix face in Europe. Google Google’s Paris offices were raided by French investigators this week who suspected it owes €1.6 billion (~$1.8 billion) in back taxes. While Google’s European headquarters is called Google Ireland Holdings, its cost center is in Bermuda — where corporate tax doesn’t exist. France isn’t the only country trying to get Google to pay up. This January, Google paid $145 million in back taxes to the UK government after an open audit by Her Majesty’s Revenue and Customs (HMRC). The amount was scrutinized for being a paltry sum, and the Parliament’s Public Account Committee concluded it “seems disproportionately small.” The chair of the committee, Meg Hillier, said this probe could have been an opportunity to reform international tax rules on a broader level. “The...

My Instagram feed has been taken over by an algorithm, and yours will be next

Something was terribly amiss when I woke up today. My morning ritual of Instagram-scrolling seemed different from how I remembered it. The first post on my feed was a seven-hour-old photo of my acquaintance (whom I met on a college tour eight years ago) giving the double-bird salute. There was no way that was the most recent photo on my feed. In disbelief, I kept refreshing the page. I follow a lot of travel accounts that make sure to post around the clock; there were bound to be beauteous shots of Machu PIcchu or Bora Bora to give me my morning jolt of inspiration. But the double-bird salute remained. Here’s why: In a blog post titled “See the moments you care about first” on March 15, Instagram first announced feeds would soon no longer be chronological and would instead be generated by algorithms. My Instagram feed apparently fell into the “test bucket” that’s among the first feeds to try out this new algorithm. But let’s be honest: Brett, the double-bird guy, posing at a black-tie gala is not really the first moment I care to see or even the second. After Instagram announced the impending algorithmic filtering, an uproar ensued. And, of course, Instagram took to Twitter to try to quell the madness, which influencers like Kendall Jenner exacerbated by insisting Instagram shouldn’t fix something that isn’t broken.

Winery CEO claims his Cabernet Sauvignon sales mirror a widely-followed economic indicator

If you want insight into how the economy is faring, you might want to see how your local wine shop is doing. David Duncan, president and CEO of family-owned California winery Silver Oak Cellars, makes a case that sales of his company’s wine correspond with the Michigan consumer sentiment index, which is considered a barometer of broad economic activity and is at its highest level since June 2015. “We have no wine to sell,” Duncan says. Silver Oak’s winery has sold out of its 2011 vintage and will be releasing its 2012 line this August. “The winery hasn’t been able to keep up with the strong consumer demand,” he says. Silver Oak, known for its Cabernet Sauvignon, is an entry level-ultra premium wine (the label’s cheapest bottle sells for $70). In other words, it’s not for high-brow wine snobs, but it’s also not for those looking for a bargain. Duncan says he’s cautiously optimistic about the rest of this year – an election year – because “not having a clear political path forward makes people nervous and will likely tighten spending.” There are other unofficial economic gauges tied to cultural phenomena, like the Big Mac Index: a survey done by The Economist that measures the...

Chinese will do crazy things to smuggle money out of the country

“A Chinese woman boarding a flight to Hong Kong to come to the United States was apprehended by border control authorities. She had wrapped her body in so much cash that she could barely walk and I think that tipped them off,” Asia Society’s Vice President of Global Programs Bruce Pickering told Yahoo Finance. Physically strapping cash to one’s body is one of several ways Chinese are bringing money offshore. The national bankcard UnionPay is a key way that Chinese are paying for large ticket items abroad, according to Pickering, who describes it as a “super ATM card.” UnionPay is China’s only domestic bank card organization (operated under the approval of the People’s Bank of China) and it’s the third-largest payment network by value of transactions processed, after Visa ( V ) and MasterCard ( MA ). The cards can be used in 150 countries and regions outside China. Pickering says UnionPay cards can only be used for smaller purchases in the United States but are readily accepted elsewhere. “In countries like Canada, for example, you can actually buy real estate just by swiping your card and it’s been an easy way to facilitate cash transfers,” he says. But as stringent capital...

China just overtook Canada as the largest foreign buyer of US residential real estate

Chinese nationals overtook Canadians as the largest foreign buyers of U.S. residential real estate for the first time ever. The Asia Society and Rosen Consulting Group co-authored a new report that found Chinese buyers spent at least $93 billion on homes, including condos, for living and investment purposes, between 2010 and 2015. Chinese investment in commercial real estate was also substantial — spending rose at an annual rate of 70% — but Canada, Singapore and Norway still have acquired more U.S. real estate in dollar volume than China. One of the increasingly popular investment methods for the wealthy Chinese is a program called EB-5, also known as the immigrant investor program. Foreigners invest capital to get on the fast track to obtain a green card. Since Congress first created the program in 1990, the program has resulted in $11 billion of investment from Chinese, or about 70% of total EB-5 investments from all countries. Bruce Pickering, Vice President of Global Programs at The Asia Society, told Yahoo Finance that over the past 25 years, these Chinese investments alone have created 200,000 jobs. “I would say that’s real and material [economic impact]. In the last few...

Yum Chairman: Our China restaurants are ready to be their own public company

Though headquartered in Louisville, Ky., Yum Brands ( YUM ) is often associated with its ubiquitous presence in China. The owner of fast food chains KFC, Pizza Hut, and Taco Bell filed to spin off its China business into its own publicly traded company with the SEC on May 3. The new company will be called Yum China Holdings and the spin-off is expected to happen later this year. “We’re creating two powerful independent companies that are interdependent on each other. China’s going to be spun off but it’s going to be Yum’s largest licensee and pay a licensing fee to Yum,” Yum Executive Chairman David Novak told Yahoo Finance. The spin-off comes at an interesting time, as its China business, which Novak says accounts for 35% of Yum’s revenue, is on the upswing. Among Yum’s brands, KFC accounts for the largest piece of its pie in China; KFC represents 75% of Yum’s operating profit in China and posted 12% same-store sales growth last quarter. China, while having served as a bright spot for Yum for the past decade, has also presented its fair share of challenges, given the country’s volatile market, food safety concerns and increased competition. Last year, the company opened 2,365 new ...

How a single tweet landed Erica Baker a top engineering job at Slack

Erica Baker made a splash online when she wrote a post on Medium titled “The Other Side of Diversity” in November 2014. She shared how being a black woman in Silicon Valley made her “stick out like a sore thumb,” and candidly detailed the stress and isolation that took a mental, emotional and physical toll on her. At the time, Baker was an engineer at Google, where she had been working for eight years. “I know this: I am not my job. I am not my industry or its stereotypes. I am a black woman who happens to work in the tech industry. I don’t need to change to fit within my industry. My industry needs to change to make everyone feel included and accepted,” Baker wrote. Reported figures from leading tech firms reveal that, on average, 71% of employees are men, 29% are women, 60% identify as white, 23% Asian, 8% Latino, and 7% black. Baker quickly realized how pervasive the feelings of despair were for women of color in the tech industry. “I got so much feedback from other people in tech who had the same experiences. I was floored. I didn’t think I was the only one, I just didn’t think it was so widespread,” she says. “When I came to the realization that these issues are systemic, I...