Upwork, the popular freelance marketplace, is expanding its services beyond freelancers with the acquisition of two companies. This move marks a significant shift as Upwork pushes further into the corporate staffing world.
The company has acquired Bubty, a workforce management platform, and signed an agreement to acquire Ascen, a global compliance and employer of record (EOR) firm.
The acquisitions, announced just before Upwork’s Q2 earnings call on August 6, aim to create a new enterprise-focused division. This division will offer more than just freelance talent, catering to the growing demand for flexible and compliant staffing solutions from large organizations.
Upwork Shifts Focus to Enterprise Clients
Traditionally, Upwork connected businesses with freelancers, but this new strategy signals a broader ambition. The company plans to integrate the capabilities of Bubty and Ascen into its existing enterprise services, forming a stand-alone entity under the Upwork brand.
This new division will support various employment models, including staff augmentation, agent of record, and employer of record services.
Upwork CEO Hayden Brown emphasized that the decision was driven by increasing demand from enterprise clients for diverse talent pools that go beyond freelance offerings.
“Most providers force customers to choose between flexibility and compliance, or speed and scale,” Brown explained. “With this new capability, we’re giving customers all the benefits they’ve been looking for.”
$100 Million Enterprise Business
Upwork’s enterprise division currently generates around $100 million in revenue, contributing to its $750 million total annual revenue. However, large clients have unique needs, especially regarding legal compliance and software integration, which differ from Upwork’s traditional small and medium-sized business base.
Creating a separate entity will allow Upwork to specialize more effectively in serving enterprise clients, with tailored solutions for scale and regulatory demands.
Why Bubty and Ascen?
Upwork explored over 100 potential acquisitions before settling on Bubty and Ascen. Both companies were piloted with Upwork, and their technologies were tested together.
The results showed a seamless integration, demonstrating the value of combining their services with Upwork’s existing platform. “We saw through the power of those pilots how impactful their technology was,” Brown said.
What’s Next for Upwork?
Upwork has not yet revealed the brand name or complete service suite for the new enterprise division. However, more details will be shared later this year.
The goal is to offer a unified platform that provides both flexibility and robust compliance, setting Upwork apart in the competitive enterprise workforce market.
With these strategic acquisitions, Upwork is positioning itself to compete with legacy staffing firms and talent platforms, reshaping the way corporations approach hiring beyond the traditional gig economy.
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