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Totally agree. AWS also operate out of a limited number of locations where they can optimize against their fixed costs (locations where they can negotiate powe
by midnightclubbed 7y ago
Totally agree.
AWS also operate out of a limited number of locations where they can optimize against their fixed costs (locations where they can negotiate power and bandwidth costs). Some of their running costs decrease when resources are not in use.
WeWork needs thousands of locations in order to be attractive to the target market and empty desks are pretty much the same cost as a full one (ongoing lease per sqft).
In San Diego there are just 2 WeWork locations, the closest being a 25 mile commute (through traffic hell) from my home. In order to be compelling they would need to be not much further than my local Starbucks.