Nearly 28% of the global workforce works remotely, and 38% of the global workforce are freelancers who don’t commute to traditional office spaces: remote work is here to stay. While it offers a number of advantages both for employers and employees, it isn’t without its drawbacks, including a plethora of distractions and an increase in loneliness and separation. Those drawbacks, among others, create a strong need for and desire for third spaces.
Unfortunately, current third space options are often limited to noisy, uncomfortable coffee shops with slow, unreliable, unsecured Wi-Fi or overly-priced coworking spaces that are often overcrowded and driven by corporate influence and limited inclusivity. Also greatly adding to the need for productive, alternative work spaces, are the over 1 million people who travel for business every single day.
CEO Mo Hamzian envisioned a better way. “When home isn’t good enough or you have to travel for work, where do workers go?” Hamzian asks. “The options out there aren’t designed for the focus and infrastructure we really need.” Instead, the VEL solution combines the comfort of a cafe with the functionality of a modern workspace, creating an environment tailored for remote and traveling workers. Hamzian’s reimagined smart spaces are all about creating productivity-focused coworking cafes that help remote and traveling workers.
“There are approximately 100 million remote workers seeking better productivity solutions,” Hamzian shares. “We have created a ‘sanctuary’ where remote workers can focus, create, and thrive.”
Addressing a growing need in the workforce
Hamzian recognized a huge gap early in the pandemic and came up with the idea of a “workplace 4.0” model, essentially a much more sophisticated alternative to traditional coffee shops, focusing on privacy, reservable spaces, and a sense of legitimacy.
“As the work dynamics began to shift, I spotted a huge need and an opportunity,” he explains. “I noticed that many professionals were struggling to find suitable environments that fostered productivity and focus. Coffee shops, which had become popular makeshift offices, often fell short in providing the necessary infrastructure, and they were full of distractions as well as being uncomfortable.”
This realization sparked Hamzian’s vision for a new category, a new kind of coworking space that blends the inviting atmosphere of a café with the functional amenities of a modern workspace. By building a team of seasoned mixologists and scientists together, they have crafted a unique and elevated experience. “Our mission combines elements like soundproofing, ergonomic design, and innovative technology to support remote workers’ needs.” Hamzian notes, “With VEL, we have thought of everything that coffee shops lack.”
Along with its wide range of refreshing and health-forward drinks, top-notch coffee, and nutritious snacks, VEL addresses an essential challenge that bridges the cultural gap employees often feel with their employers. The solution involves compact, intelligent, robot-enabled workstations that adapt to meet employees wherever they are, enhancing their work environments. Imagine a remote employee working in one of these spaces, feeling a connection to the company as though physically present in its headquarters. These personalized workspaces provide not only essential tools and resources but also foster a strong sense of community and belonging, ultimately boosting engagement and productivity.
“Our solution involves deploying micro-intelligent robotic-led customizable work boxes designed to meet employees where they are and enhance their work environments. For instance, imagine a remote employee at an insurance company feeling as if they’re physically present in the company’s micro building, fostering a sense of belonging and a cultural bond.”
For rapid scalability: smart kiosks instead of real estate
Flexible smart kiosks offer additional key advantages over traditional brick-and-mortar locations by being far more agile and adaptable. Unlike permanent structures, their kiosks are modular and can be placed in a variety of high-traffic areas, offering significant reach without the long-term overhead or infrastructure costs of a fixed space. This flexibility allows VEL to tap into diverse environments and quickly relocate or expand, all while keeping costs low. With a focus on accessibility, their model provides the ease of entry and customer convenience needed to serve today’s remote and hybrid workforce efficiently and on demand.
Hamzian is strategically deploying its kiosks in high-traffic locations, like airports, to maximize accessibility and convenience for remote workers. By placing kiosks in transport hubs, hotels, shopping malls, and hospitals, and with plans to expand beyond urban centers, Hamzian is tapping into a diverse range of environments where professionals are likely to need a productive space outside their homes.
VEL also makes things easier and more cost-friendly with its subscription model, offering reserved seating, private Wi-Fi, and contactless ordering. This approach cuts down on wait times and improves the overall experience, allowing remote workers to find a productive spot without the hassle. “When you’ve got fast, reliable Wi-Fi and a guaranteed seat, it takes away so much friction,” Mo says. “It’s all about creating a smooth experience with limited barriers.”
Likewise, Hamzian prioritizes security. Each kiosk provides secure, high-speed Wi-Fi, ensuring that customers can work safely and efficiently. This includes the option for users to connect through their own VPN in order to enhance their online privacy and safeguard their data.
Navigating the challenges of expansion
Scaling up can be tricky, especially in a capital-heavy market. But Hamzian’s background in real estate, private equity and strategic mergers has given him the tools to tackle these challenges head-on. Under his leadership, VEL has seen an impressive 95% compound annual growth. “To grow quickly, we had to pivot to a tech-driven, factory-built kiosk model,” Hamzian explains.
“Companies can also customize a kiosk’s features to further enhance their brand presence.”
Hamzian has built a strong pipeline of partnerships and collaborations. Hamzian’s strategic vision is rooted in a solid understanding of market dynamics and user needs. With around 30-40% of users subscribing at certain locations, VEL has the potential of generating steady revenue that mirrors successful models in the tech world. Looking ahead, VEL’s market potential is vast. “We have a unique chance to carve out our own category.”
Hamzian’s vision goes beyond just creating functional spaces; it’s about rethinking how you view work environments. By focusing on remote workers’ needs and crafting a product that truly addresses those needs, “We’re not just building kiosks; we’re creating a culture of productivity. We are creating a ‘sanctuary’ for remote workers,” Hamzian sums it up, “With a dedicated leadership team, a scalable business model, and a clear grasp of market demands, our mission is ready to make an impact on the future of work and alternative workspaces.”
Learn more about VEL today.
VentureBeat newsroom and editorial staff were not involved in the creation of this content.