The Gig Economy Makes the Switch From Clicks to Bricks
James King aged Account Executive, VTS nothing has disrupted the UK occupation landscape over the final few years a much as the gig economy. Five years ago few people in the UK would have hear of Uber. today a healthy collocate of the population no long hail a cab ( particularly in London ) – they ‘ Uber it ’.
Uber international relations and security network ’ t the only gig economy business that ’ s been making waves in the UK. Airbnb and food pitch business Deliveroo – to name but two – have besides come along, created new markets and left traditional brands lying in their wake up. To date these companies have had little direct impact on the place sector – although some of the world ’ s leading hotel groups regularly cite Airbnb as the reason some parts of their estates aren ’ metric ton do equally well as they have done historically .
The move to bricks
however, there has been a recent noticeable switch in the strategies of these gig economy companies. It ’ s a shift that started very lento and softly last year when Deliveroo opened a series of ‘ RooBoxes ’ that leave traditional bricks and mortar restaurant brands to set up dedicated kitchens for the home rescue of their food and swallow. then in April this year the company announced it was looking for 30 sites across the UK for a concept it branded Deliveroo Editions. The party is looking for leasehold sites that can accommodate kitchens with a footprint of 2,500-4,000 sq ft. Deliveroo says it will consider light industrial locations, car parks, service yards, excess spaces and development down with its precedence being sites within the M25 and in cities like Nottingham, Manchester, Leeds, Newcastle and Bristol. It already serves many of these locations, but many of the restaurant operators it works with miss sites in these areas. therefore Deliveroo Editions facilitates the initial geographic expansion of selected brands without signing up for drawn-out, expensive high street leases.
As Scott Collins, co-founder of hip hamburger brand MEATliquor puts it : “ Deliveroo Editions presents us with the perfect opportunity to extend our compass and test the waters in areas where we may not open bricks and mortar restaurants. ”
Uber eyes up car parking sites
close on the heels of Deliveroo ’ s announcement news program broke that Uber was besides in the commercialize for nation that would allow its drivers to park up around major transportation hub. At the consequence there is a dedicate area at Heathrow Airport where individual hire drivers can park then that they don ’ thyroxine campaign congestion around the airport while waiting for their fares and Uber is considering doing a similar thing with its own car parking sites around airports like Gatwick and City. It ’ s an interest deviation for gig economy businesses that have thrived due to their lean business models and first gear overheads and it ’ s one that many members of the property industry are watching with pastime as there is potentially huge scope for far growth. Some people might question whether or not these businesses are going to end up taking meaningful chunks of space, but if person had said a decade ago that by 2017 Amazon would be opening bookshops and grocery stores across the US, the gloss would have been met with a bewilder look.
James King senior Account Executive | VTS James King is a senior Director at VTS. Prior to joining VTS, James was an Associate Director at CBRE, where he specialised in advising Central London landlords on rent and development in the firm ’ s market-leading Landed Estates retail team. Subscribe to the VTS blog : hypertext transfer protocol : //vts.com/blog/