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This comes up every time WeWork is mentioned, but their model is literally the opposite. They take leases on commercial space long term and then arbitrage short
by CPLX 9y ago
This comes up every time WeWork is mentioned, but their model is literally the opposite. They take leases on commercial space long term and then arbitrage short term. Meaning they lose out on massive gains but are totally exposed to a downturn in demand for the kind of space they provide.
- roguecoder 9y agoThey are riding the current bubble, and momentum investing is solid cash. It seems like they want to be Levi's, using this gold rush to do rapid customer experimentation and then commercialize those gains over the long-term. Diversifying the possible uses of their space via MeetUp is at least a step in that direction.