Upwork Expands into Corporate Staffing with Strategic Acquisitions of Bubty and Ascen

Upwork, a leading platform connecting businesses with freelance talent, is significantly expanding its market reach by acquiring workforce management platform Bubty and entering into a definitive agreement to acquire Ascen, a global compliance and Employer of Record (EOR) company. These strategic moves are designed to bolster a new, stand-alone enterprise-focused business unit.

The San Francisco-based company announced the acquisitions as it prepares for its second-quarter earnings call. The integration of Bubty and Ascen into Upwork’s existing enterprise operations will create a distinct entity under the Upwork umbrella. This new venture moves Upwork beyond its traditional independent contractor model, enabling it to offer a broader spectrum of staffing solutions, including agent of record, employer of record, and staff augmentation services.

Upwork President and CEO Hayden Brown highlighted that the timing is opportune, driven by increasing demand from Upwork’s current enterprise clients for access to diverse talent pools and integrated workforce solutions. Brown stated that the company aims to address a common market gap where businesses are forced to compromise between flexibility and compliance, or speed and scale, by offering a comprehensive solution that provides all these benefits.

“Most of the providers that exist today force their customers to choose between flexibility and compliance, or speed and scale, or having a digital tool versus having something that’s actually robust and for the enterprise,” Brown explained. “And with this new capability, we’re refusing to compromise. We’re giving our customers all of the benefits they’ve been looking for, and we’ve heard loud and clear that they want this singular solution.”

Currently, Upwork’s enterprise business accounts for approximately $100 million of the company’s total annual revenue of $750 million. Establishing the enterprise business as a separate entity is strategic, recognizing that enterprise clients have distinct needs concerning compliance and software integrations, differing significantly from the small and midsize businesses that form the core of Upwork’s primary operations. This separation will facilitate clearer external branding and sharper internal focus.

Upwork’s decision to acquire Bubty and Ascen followed an extensive vetting process, reviewing over 100 potential companies. The selection was based not only on the individual strengths of Bubty and Ascen but also on their synergistic capabilities, which were validated through pilot programs where the companies were tested both individually and in tandem with Upwork’s existing services.

“We saw through the power of those pilots how impactful their technology was and how easy it was to basically snap together what each of them offers, along with our existing offering to deliver something very new and innovative in the market,” Brown added. Further details regarding the branding and complete offerings of this new, stand-alone enterprise business are expected to be released later this year.