4 ms·

Rare? Regus was widespread in this space before WeWork was a twinkle in Adam Neumann's eye.

by vonmoltke 7y ago

kasey_junk 7y ago
1 vendor in a space is rare.
- vonmoltke 7y ago
  Regus wasn't the only vendor, just the largest one. Also, I'd call one vendor in a space a monopoly. Rareness is about the ease of finding a vendor.
tptacek 7y ago
Is Regus really pin compatible with WeWork? WeWork offers cheap 1-desk offices with Internet/utilities bundled. Last I checked, Regus offered a "1-desk office" that was much more expensive, could fit several people, and didn't include amenities like Internet bundled. There were online retailers before Amazon, too.
- vonmoltke 7y ago
  > Is Regus really pin compatible with WeWork? WeWork offers cheap 1-desk offices with Internet/utilities bundled. Last I checked, Regus offered a "1-desk office" that was much more expensive, could fit several people, and didn't include amenities like Internet bundled. Depends on the market. Regus, as far as I know, doesn't put a lot of effort on build-out of the spaces they sublet. They take them pretty much as they are. It certainly wasn't a co-working space, but those weren't rare before WeWork either. > There were online retailers before Amazon, too. There certainly were online retailers before Amazon, but people didn't call them "rare" before Amazon.
  - tptacek 7y ago
    "Rare" wouldn't be the word I would use, but the offering WeWork had, a few years ago, was unique and very well targeted to people like me: default month-to-month leasing of flexible 1- and 2-desk offices and hot desk spaces, all amenities included, at below-market prices.
- hakfoo 7y ago
  I suspect we may be still defining the actual market. There are definitely some components of the WeWork experience that are a hard sell even in their target market. The noise, lack of privacy, and casual nature for example. It would not be hard for Regus and friends to roll out trial balloons for variations on the theme. I see WeWork has having a few damning problems that aren't issues of questionable business or accounting practices: 1) Since they're an challenger in a hot real-estate market, they're starting at a price disadvantage to anyone who already has properties. If other brands can copy enough of their magic at 20% less money, watch WeWork disappear from approved-vendor lists. 2) They're pushing for scale in a non-scale business. There's not huge synergies in supply, marketing, or purchasing. The fact they have hundreds of locations doesn't matter for many "I need an office in one specific place" use case. I don't doubt a WeWork of a handful of locations, as a niche product, would be a modest success. But they need that investor-pleasing hockey-stick growth which means "open 500 locations speculatively" and "generate huge debts and close 50% of locations once we figure out what won't perform".
  - tptacek 7y ago
    WeWork rents out multi-story buildings packed full of single-desk offices. What "noise" and "lack of privacy" are you referring to? Both Regus and WeWork have hot-desk areas.

Rare? Regus was widespread in this space before WeWork was a twinkle in Adam Neumann's eye.

kasey_junk 7y ago

1 vendor in a space is rare.

vonmoltke 7y ago
Regus wasn't the only vendor, just the largest one. Also, I'd call one vendor in a space a monopoly. Rareness is about the ease of finding a vendor.

tptacek 7y ago

Is Regus really pin compatible with WeWork? WeWork offers cheap 1-desk offices with Internet/utilities bundled. Last I checked, Regus offered a "1-desk office" that was much more expensive, could fit several people, and didn't include amenities like Internet bundled. There were online retailers before Amazon, too.

vonmoltke 7y ago
> Is Regus really pin compatible with WeWork? WeWork offers cheap 1-desk offices with Internet/utilities bundled. Last I checked, Regus offered a "1-desk office" that was much more expensive, could fit several people, and didn't include amenities like Internet bundled. Depends on the market. Regus, as far as I know, doesn't put a lot of effort on build-out of the spaces they sublet. They take them pretty much as they are. It certainly wasn't a co-working space, but those weren't rare before WeWork either. > There were online retailers before Amazon, too. There certainly were online retailers before Amazon, but people didn't call them "rare" before Amazon.
- tptacek 7y ago
  "Rare" wouldn't be the word I would use, but the offering WeWork had, a few years ago, was unique and very well targeted to people like me: default month-to-month leasing of flexible 1- and 2-desk offices and hot desk spaces, all amenities included, at below-market prices.
hakfoo 7y ago
I suspect we may be still defining the actual market. There are definitely some components of the WeWork experience that are a hard sell even in their target market. The noise, lack of privacy, and casual nature for example. It would not be hard for Regus and friends to roll out trial balloons for variations on the theme. I see WeWork has having a few damning problems that aren't issues of questionable business or accounting practices: 1) Since they're an challenger in a hot real-estate market, they're starting at a price disadvantage to anyone who already has properties. If other brands can copy enough of their magic at 20% less money, watch WeWork disappear from approved-vendor lists. 2) They're pushing for scale in a non-scale business. There's not huge synergies in supply, marketing, or purchasing. The fact they have hundreds of locations doesn't matter for many "I need an office in one specific place" use case. I don't doubt a WeWork of a handful of locations, as a niche product, would be a modest success. But they need that investor-pleasing hockey-stick growth which means "open 500 locations speculatively" and "generate huge debts and close 50% of locations once we figure out what won't perform".
- tptacek 7y ago
  WeWork rents out multi-story buildings packed full of single-desk offices. What "noise" and "lack of privacy" are you referring to? Both Regus and WeWork have hot-desk areas.