Snapchat decides to set its operations base in UK despite Brexit
The Dollar Business Bureau
Snap Inc, previously known as Snapchat, is going to set up its international headquarter in the UK, a decision which is seen as a vote of confidence for the Britain following the Brexit.
The UK will become the main hub outside the US for the California-based technology company.
Snap Inc said that it selected the UK because of the country’s strong creative companies. This is a surprise move from that of the US tech firms that have been favouring low-tax destinations like Luxembourg for Amazon or Apple and Facebook favouring Ireland.
Claire Valoti, Snap’s General Manager in UK, said, “Our advertising clients are in the UK, where we have over 10 million daily Snapchatters, and where we have already started the hiring.”
Although UK is still in the process to leave EU, smaller tech firms have expressed concerns over the expected effect of Brexit, mainly a so-called ‘hard Brexit, would have on the tech sector’. However, bigger firms, such as Google and Facebook, have recently shown their commitment through increased investment in the Kingdom.
The new company is known as Snap Group Ltd, after its parent’s rebranding in the US, from Snapchat to Snap Inc. The name is envisioned to focus on the company’s new self-image as a first and foremost camera company.
“We believe that reinventing the camera represents our greatest opportunity to improve the way people live and communicate,” the company’s website extolled.
Snapchat, having a stated user base of more than 150 million, is smaller compared to competitors such as Facebook and Twitter, which have a user base of 1 billion and 350 million respectively. However, Snap has focused on leading a few specific niches over the wide reach of the bigger firms, and is mainly popular among the young population in the UK and the US.