r-zero Acquires Coworkr: Building an OS for the Workplace

R-Zero Acquires CoWorkr, Signaling a Shift in Pandemic-Focused Biosafety

On Tuesday, R-Zero, a biosafety firm established during the pandemic, revealed its acquisition of CoWorkr, a developer of room occupancy sensors. This acquisition signifies a strategic realignment for R-Zero as workforce patterns evolve, vaccinations become widespread, and companies initially formed in response to COVID-19 transition to a new operational phase.

From Disinfection to Comprehensive Workplace Management

Initially founded in April 2020, R-Zero concentrated on the development of hospital-grade UVC disinfection systems – utilizing lights capable of neutralizing specific virus types. As organizations urgently sought methods for building sanitation, the company secured $58.8 million in funding, achieving a valuation of $256.5 million.

Currently, R-Zero serves approximately 1,000 clients across the public and private sectors, including correctional institutions, the Brooklyn Nets and Boston Celtics basketball teams, and the South San Francisco Unified School District.

CoWorkr, established in 2014, had previously raised around $200,000 in seed funding, according to Crunchbase.

Following the CoWorkr acquisition, R-Zero intends to create an internet of things (IoT) sensor network for managing both personnel and cleaning protocols within workplaces, as stated by R-Zero founder Grant Morgan. The company is expanding its scope beyond simply air and surface disinfection to encompass the management of human traffic – and consequently, the spread of viruses and bacteria – in shared environments.

Building an Operating System for the Modern Workplace

“We envision this as an OS for the workplace,” Morgan explained to TechCrunch. “Our goal is to provide tools that facilitate the creation and maintenance of indoor spaces prioritizing both health and productivity.”

Elizabeth Redmond and Keenan May, the co-founders of CoWorkr, will continue in full-time roles, leading a corporate real estate initiative and spearheading the development of IoT capabilities.

Redmond shared with TechCrunch, “We have dedicated considerable time to understanding our customers’ needs and objectives, particularly within the commercial real estate sector.”

She continued, “The majority are adopting hybrid work models, which necessitates accurate occupancy data. Our collaboration with R-Zero directly addresses the evolving landscape of hybrid work and commercial real estate.”

The Evolution of R-Zero’s Product Line

Prior to acquiring CoWorkr, R-Zero’s primary product was Arc, a portable UVC light designed for office sanitation after cleaning staff have completed their tasks. The company also offered Arc Air, an air purification system incorporating UVC light technology for use in occupied spaces.

UVC lights experienced a surge in popularity in mid-2020 due to their perceived effectiveness in disinfecting shared areas and the incentives available for implementing technology-driven COVID-19 solutions.

For decades, UVC lights have been utilized in hospitals to sanitize equipment like scanners and to purify air within UV air duct systems. Research demonstrates their ability to deactivate flu viruses in the air. Furthermore, limited evidence suggests UVC can also inactivate SARS-CoV-2 and other coronaviruses by disrupting their outer protein structure.

Real-World Applications and Emerging Concerns

During the pandemic, UVC lights were deployed in practical settings. The New York Metropolitan Transport Authority, for example, invested $1 million in UVC lights to disinfect subway cars nightly. The CARES Act of March 2020 enabled companies and public entities to utilize government loans for purchasing cleaning services, including UV light technology.

However, certain consumer-grade UVC lamps faced criticism. Prolonged exposure can cause eye damage or skin burns. A review of UVC disinfection technology (authored by scientists affiliated with a UVC disinfection company) pointed out the prevalence of “nonscientific performance claims” within the emerging industry.

R-Zero’s Arc product has undergone third-party testing, demonstrating a 99.99% reduction in two viruses: a common cold coronavirus and a norovirus surrogate on surfaces. It also proved 99.99% effective against E. Coli and Methicillin-resistant Staphylococcus aureus (MRSA).

A Lasting Shift in Hygiene Awareness

Despite debates surrounding the efficacy of some UVC lights, analysts believe the industry has staying power. LG, for instance, has entered the UV-based cleaning market. Tim Mulrooney, a commercial services equities analyst at William Blair, told The Washington Post that a “paradigm shift” is occurring in public perception of hygiene.

A 2020 survey of 3,000 individuals revealed that cleaning procedures were a primary concern for both employees and customers. Deloitte’s survey indicated that 64% of employees valued regular cleaning of shared spaces, and 62% of customers desired surface cleaning after each interaction (despite evidence suggesting surfaces are not a primary transmission route for COVID-19).

The impact of widespread vaccination on perceptions of office cleanliness remains uncertain. However, Morgan anticipates that companies and individuals are now more attuned to the presence of germs and will actively seek methods to control their spread – including managing foot traffic within office environments.

Looking Ahead: Automation and ROI

For R-Zero, this entails expanding beyond UVC disinfection to prioritize occupancy management through the CoWorkr acquisition.

Morgan describes CoWorkr’s sensors as R-Zero’s “eyes and ears.” The company plans to introduce two UVC-based products focused on air purification in occupied spaces, leveraging CoWorkr’s sensors for “full automation.”

For example, CoWorkr’s battery-powered thermal sensors provide employers with real-time data on room occupancy. This information can trigger the activation of a UV-based air filter or other cleaning protocols.

This data can also inform janitorial staff, directing them to thoroughly clean occupied rooms or to bypass those that remain unused throughout the day.

“Our customers are experiencing an immediate return on investment. They are reducing labor costs by 30-40%,” Morgan states.

Ultimately, Morgan believes that the demand for clean workspaces will persist, potentially fueled by lingering anxieties from the pandemic. “In almost 100% of cases, our customers view this as a long-term investment,” he concludes.