WeWork Labs, a co-working space for new tech companies, is located in SoHo and holds about 220 people. To keep costs to a minimum, the space has brought in advertisers like PepsiCo. In fact, according to Crain’s NY Business, PepsiCo is not a stranger to startups and almost always has about 10% of its digital-media budget for beverage brands in the U.S. invested in startups. Additionally, PepsiCo10, an incubator program, has been supported by PepsiCo since 2010. The company also flaunts working with FourSquare when there were only 30,000 users. Despite all of this, PepsiCo still wanted to go deeper into the world of startups.
Shiv Singh, global head of digital at PepsiCo, told Crain’s that, “One key insight [is] you can’t just do competitions, temporary engagement, check the box. We decided to formalize a relationship, to really think about how to bring infrastructure to supporting startups, helping them help us.” This resulted in the creation of Digital Labs, a program that focuses on the company’s beverage brands and working with startups. A lot of these startups are introduced to PepsiCo through WeWork Labs.