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The fundamentals were not bad ideas. Regus has been doing things similar to WeWork for decades. Neumann committing fraud, poor cash management, and self-dealin
by loganfrederick 6y ago
The fundamentals were not bad ideas. Regus has been doing things similar to WeWork for decades.
Neumann committing fraud, poor cash management, and self-dealing conflicts of interest are what killed WeWork. Not the coworking space concept.
- 908B64B197 6y agoWhat I don't understand is the multiples at which WeWork was trading. I could definitely understand the business model (it's cloud computing for real-estate!) and especially cool for remote/business travelers since from what I understand it was rather easy for a WeWork user to use any of their facilities.
- rtx 6y agoYou can, if you think of it like a Ponzi scheme.
- xapata 6y agoPeople said the same thing about AWS: "Hardware is a commodity, how can they possibly turn a profit renting out hardware?"
- 908B64B197 6y agoIt's more that they bill by the capacity used and it's possible to cancel at any time. Same way a WeWork is more expensive than renting your own real estate but it's probably simpler than getting into a long term lease. Plus if your startup has to scale up WeWork can accommodate, unlike your typical office rental.
- Wowfunhappy 6y agoThe pandemic also would have hit them pretty hard had they not semi-collapsed a few months before.