WeWork isn't close to being profitable(businessinsider.com)
businessinsider.com
WeWork isn't close to being profitable
https://www.businessinsider.com/wework-not-close-to-profitable-loses-hundreds-thousands-every-hour-2019-7
13 comments
A number of analysts have stated that WeWork is nothing more than a realestate company and owning those spaces are a liability.
If WeWork were to go under, all the properties being mortgaged would become a problem for the banks. Whereas if WeWork didn't own property and went under, the owners of those properties could just go find other tenants.
If WeWork were to go under, all the properties being mortgaged would become a problem for the banks. Whereas if WeWork didn't own property and went under, the owners of those properties could just go find other tenants.
There is a mild network effect if a company has multiple offices with WeWork. In 2015 I was at a startup with an office in New York and Washington DC. It was useful to be able to go back and forth. A
I’d love to have been a fly on the wall when WeWork pitched their business model and seemingly unique approach to coworking that somehow validates the amount of investment they have received compared to any other coworking space.
I don't believe there was too much pitching involved. Softbank is desperate for stuff to throw money at, WeWork is stuff to throw money at.
[deleted]
It really doesn’t matter what you build. It’s all about who you know, and how good you are at asking for money.
Right. People have raised $67m to build a F photo app.
Did it turn out to be a good investment?
Photo app?
Correction - they raised $41m. They eventually shut it down
https://collapsed.co/startups/color-labs
https://collapsed.co/startups/color-labs
Wow! I had no idea collapsed was a thing. Thank you!
More like WeWork isn't close to being a legitimate business. It's a scam.
I think it's because Novel actually owns the spaces they lease out so they can lower costs while still controlling quality. They can't grow at the breakneck pace of WeWork, but why should they have to? Unlike Uber there aren't any network effects when you have more spaces. If you provide a cheaper, better space in the same neighborhood it doesn't matter if WeWork is in hundreds more locations. Uber has an advantage with more drivers and market saturation leading to better service, but WeWork has nothing. Sooner or later they'll be completely overtaken by competitors.