
WeWork isn't close to being profitable - onetimemanytime
https://www.businessinsider.com/wework-not-close-to-profitable-loses-hundreds-thousands-every-hour-2019-7
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super-serial
I have a membership to Novel Coworking. The space is awesome and the
membership costs a fraction of WeWork.

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.

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ab_c
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.

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tlobes
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.

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dna_polymerase
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.

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koiz
More like WeWork isn't close to being a legitimate business. It's a scam.

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xenospn
It really doesn’t matter what you build. It’s all about who you know, and how
good you are at asking for money.

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mandeepj
Right. People have raised $67m to build a F photo app.

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xenospn
Photo app?

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mandeepj
Correction - they raised $41m. They eventually shut it down

[https://collapsed.co/startups/color-
labs](https://collapsed.co/startups/color-labs)

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xenospn
Wow! I had no idea collapsed was a thing. Thank you!

