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> In principle, how it is different than AirBnB or Uber in regard of being a tech company? It's not like Uber or AirBnB's core compentancies are tech, I'm sure

> In principle, how it is different than AirBnB or Uber in regard of being a tech company? It's not like Uber or AirBnB's core compentancies are tech, I'm sure WeWork can also build a dev team making frameworks and research that some day might be used in their core business. Some day, maybe they could?! But their current business is selling short term office space leases. They have massive liabilities in their long-term leases. If Uber (an absurd business in its own right) bought all the cars and paid their drivers salaries, that'd be a closer approximation to what WeWork is doing. It would be just another taxi company, and worth at least an order of magnitude less than it is today.

insulanus 7y ago
Good description. Uber is making use of people's free time, and their car (a very expensive asset) at low rates. They can cut or hire a driver at any time, and they also control the pricing both ways. WeWork only controls pricing on the customer side, and office space leases are way more cumbersome than the Uber driver contract (I shudder to think what that looks like).
mrtksn 7y ago
Most technology IPO were of companies that were losing money, people bought what they might become one day. Nothing new here, maybe they will change the way they operate when they establish the brand and optimize the operations.
- human20190310 7y ago
  The depth of the hole they're in at IPO time has some bearing as to whether or not they'll climb out of it.
  - mrtksn 7y ago
    But this doesn’t say if they are a tech company or not. If you think that it’s a bad investment simply don’t invest? Why is the “WeWork ain’t tech company” uproar?
    - the_gastropod 7y ago
      It seems like you're just not listening. They're not a tech company because they, while they may use software for some things, it's not their differentiator. Tech companies are valued at higher multiples because software doesn't deal with scarcity. It costs Microsoft virtually nothing to sell an extra copy of Windows. So each extra sale is pure profit. WeWork sells OFFICE SPACE—something with real world scarcity, and each additional sale / customer they get has very real costs and overhead associated with it.
      - mrtksn 7y ago
        i’m not convinced that this is true because they can embrace the Uber or AirBnB business models to do just that. If They can be Tech companies, WeWork can too. I suspect that the value is in the brand, just like with the Uber or AirBnB. Making a booking software or mobile app is not such a big deal but they are called tech companies for some reason.
        ohashi 7y ago
        Your argument is the company can pivot post-IPO to something it's never done and it's magically a successful tech company? I feel like you didn't read the article or being purposefully dense.
        mrtksn 7y ago
        But the thing that “never done” is not some technology. How this will change the status of WeWork as a tech company or not? Also I wouldn’t call it pivot, their users even don’t have to notice a thing. They can do it concurrently. Pretty much like McDonalds owning some of the restaurants and providing franchises to the rest.
        ohashi 7y ago
        It would be closer in alignment with what was defined as a tech company. The article is pretty explicit defining the features of a tech company. WeWork isn't. Saying they could do something that would fit some of those characteristics and it's easy doesn't magically make it true. If McDonalds is so easy, how come everyone else isn't as globally prevalent? It's not easy. It's competitive as hell. It's a completely different model. But you're not making arguments in good faith, you're just being intentionally dense.
deleted 7y ago
[deleted]
tonyhb 7y ago
Breather is the Uber of office space. You are exactly right comparing WeWork with uber _if and only if_ uber buys all of the cars and therefore the liabilities.
- mrtksn 7y ago
  Two things: 1) how this effects the position of WeWork as a tech company(or not)? 2) Is there a law or something preventing them from changing their business model? Maybe this is “phase 1” of their grand plan to build a brand, optimize the process of opening new locations etc and they will switch to “rent your empty property under WeWork brand like renting from AirBnB, just comply with the requirements just like Uber drivers’ cars have to comply” business model?

insulanus 7y ago

Good description. Uber is making use of people's free time, and their car (a very expensive asset) at low rates. They can cut or hire a driver at any time, and they also control the pricing both ways. WeWork only controls pricing on the customer side, and office space leases are way more cumbersome than the Uber driver contract (I shudder to think what that looks like).

mrtksn 7y ago

Most technology IPO were of companies that were losing money, people bought what they might become one day. Nothing new here, maybe they will change the way they operate when they establish the brand and optimize the operations.

human20190310 7y ago
The depth of the hole they're in at IPO time has some bearing as to whether or not they'll climb out of it.
- mrtksn 7y ago
  But this doesn’t say if they are a tech company or not. If you think that it’s a bad investment simply don’t invest? Why is the “WeWork ain’t tech company” uproar?
  - the_gastropod 7y ago
    It seems like you're just not listening. They're not a tech company because they, while they may use software for some things, it's not their differentiator. Tech companies are valued at higher multiples because software doesn't deal with scarcity. It costs Microsoft virtually nothing to sell an extra copy of Windows. So each extra sale is pure profit. WeWork sells OFFICE SPACE—something with real world scarcity, and each additional sale / customer they get has very real costs and overhead associated with it.
    - mrtksn 7y ago
      i’m not convinced that this is true because they can embrace the Uber or AirBnB business models to do just that. If They can be Tech companies, WeWork can too. I suspect that the value is in the brand, just like with the Uber or AirBnB. Making a booking software or mobile app is not such a big deal but they are called tech companies for some reason.
      - ohashi 7y ago
        Your argument is the company can pivot post-IPO to something it's never done and it's magically a successful tech company? I feel like you didn't read the article or being purposefully dense.
        mrtksn 7y ago
        But the thing that “never done” is not some technology. How this will change the status of WeWork as a tech company or not? Also I wouldn’t call it pivot, their users even don’t have to notice a thing. They can do it concurrently. Pretty much like McDonalds owning some of the restaurants and providing franchises to the rest.
        ohashi 7y ago
        It would be closer in alignment with what was defined as a tech company. The article is pretty explicit defining the features of a tech company. WeWork isn't. Saying they could do something that would fit some of those characteristics and it's easy doesn't magically make it true. If McDonalds is so easy, how come everyone else isn't as globally prevalent? It's not easy. It's competitive as hell. It's a completely different model. But you're not making arguments in good faith, you're just being intentionally dense.

deleted 7y ago

[deleted]

tonyhb 7y ago

Breather is the Uber of office space. You are exactly right comparing WeWork with uber _if and only if_ uber buys all of the cars and therefore the liabilities.

mrtksn 7y ago
Two things: 1) how this effects the position of WeWork as a tech company(or not)? 2) Is there a law or something preventing them from changing their business model? Maybe this is “phase 1” of their grand plan to build a brand, optimize the process of opening new locations etc and they will switch to “rent your empty property under WeWork brand like renting from AirBnB, just comply with the requirements just like Uber drivers’ cars have to comply” business model?