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They might actually positioned really well for companies that don't want to commit to their own space when the company is remote half the time.
by dehrmann 5y ago
They might actually positioned really well for companies that don't want to commit to their own space when the company is remote half the time.
- ethbr0 5y agoThat's a fickle slice though. They're only attractive to (a) individuals or (b) companies too small to just deal directly with standard office space brokers. They need larger accounts to drive their COGS down, but larger accounts can bypass their service. So they're like a cloud provider, except without all the synergy and lock-in. The only future where they're moderately successful is one where workforces are substantially more spread out (one employee in each different city) and they're a broker. But even then... they'd face the challenge of scaling their business geographically (office in every city) vs having larger offices in hubs.
- notsospecialk 5y agoMaybe. They'll still need to invest quite a bit to get there though both in how their space is set up and their operating model. Right now empty co-working spaces are quite attractive, but as the get back to a capacity that's actually profitable for WeWork, they are essentially selling 1) occasionally sitting in close proximity to a bunch strangers that changes every time you go in (the day pass), 2) or nicely furnished/designed but overpriced priced reserved offices (monthly subscription). Companies (and probably workers too) are generally going to be cautious about #1 due to covid long after the dust settles, and #2 is just not a great deal regardless of who's fronting the bill.