Funny, but since they are in 29 countries, that would probably require a global economic crisis. Otherwise there's always be countries where their offices are rented to capacity. Or so I'd assume.
@Null Void Amazon's scale is a competitive advantage, as it truly benefits users (both buyers and sellers). WeWork's scale is meaningless for most customers, i.e. freelancers and small businesses.
@@given-namesurname5740 I'm not saying WeWork is meaningless, but the global scale of WeWork doesn't bring any benefits to individual clients, who pay to rent a small space in a specific location. Being global allows WeWork to serve more clients, but each individual client doesn't gain benefits from WeWork's scale.
or set up your startup in a spare room or the garage. The WeWork clone near my place at the shopping mall never has anyone in there besides the receptionist. Must be a boring and easy job being that receptionist hah.
In my opinion, coworking should be a program offered by public libraries, community centers, and colleges and universities. Why? Because the people who really need coworking can't afford it.
Your garage is still part of your house, and thus same address. Steve Jobs & Wozniak started in Jobs garage. Any govt that disallows a garage startup would have been paid off by large corporations to undermine competition. Business ownership should not be limited to only the already wealthy.
2:48 but it's unclear what would happen if suddenly fewer start-ups and freelancers were looking for workspace, which could happen in an economic downturn.
WeWork is the next Theranos: a pseudo "great and innovative idea" based on nothing but good hopes. It's just a matter of time until that bubble bursts. Just wait and see...
I feel like these similar companies are own by the same group, one bankrupts or not profiting someone buys them out for cheap, and then a new company pops up and continue.
But creating the name WeCompany would have been such hard intellectual work... surely he deserved more than $6 million from selling the name WeCompany to WeWork for $6 million. /s WeWork may still succeed though on their IPO just because I already know people love throwing their money away at hyped up junk. I have a feeling though if their IPO crash and burns, then it could set off a chain reaction to all the dodgy overvalued companies on the stock market. A re-adjustment like what happened after the 2000 crash.
The CEO cashed out $700M ahead of his IPO. What kind of CEO does that? To me that shows a lack of confidence in the company. And the fact that the We Board put in a clause that they can remove him at any time shows me the board lacks confidence in the CEO and his shady dealings. Red flags all over the place here.
I am a frelancer and home is the best place to work, doesn't make any sense to rent an office, if i need to meet a client i go to a nice cafe one block away, my business is very profitable without office
@H. Anthony Ribadeneira since when did 12 year olds began doing freelance jobs? besides many freelancers meets their client in coffee shops and discusses things over coffee and the cozy environment. Thats profitable for both the freelancer and the client. thats how it works in 2010s. Jeez dude you livin in 1990s. good luck finding a quality freelancer if you find it embarrassing meeting them in a coffee shop.
@@goodmorningwhyyugei7668 whenever I see someone throw insults, I immediately stop listening to them and just ignore what they’re trying to say because I know it more than likely will be unfounded or very very weak.
WeWork has some nice locations and offices but prices are too high. Cheaper competitors offering prices at a fraction of the prices for contracts as little as 3 months or even monthly. Just like many gym memberships people can get on monthly basisas they do not want to be committed to long BS memberships.
@@kobrapromotions multiple employees can't all just work out of a hotel lobby, not because of the hotel would kick them out of anything but productivity is tied to morale and work environment.
They provide little to no economic benefit. In their own words, may never reach profitability. Questionable business practices (we work bought new name from own CEO for 6 million). This company is going to get slaughtered
Isn't that unethical? Borrow money for your failing business and then pay It to yourself... or is it family money or something. That would make the guy more to relatable trust fund clients who pretended to be productive members of the market economy.
Tucker Sabath highly unethical. Here’s what happened. He trademarked “We Company” and then decided that Wework should change its name to WeCompany, then sold them the name for 6 million.. very shady business for sure
XJLCA they were a private company which is more flexibility. I have heard that if they do go public, then he would have to pay it back. Definitely unethical, we’ll see what happens
i don't know how it is in another countries, but in my country the regulation is you need to have a physical location for your business, and sometimes residential area can't be turned into a business location. So that's why office space sharing is a thing.
If all of a company's workers work from home, they'd need professional environment to hold meetings or tests that isn't a library or a cafe. These spaces are incredibly overpriced, but useful, especially for startups.
WeWork competitors in my country is half the price which is still expensive. WeWork is valued for creating communities in the US but they will have a hard time in other countries with different cultures and values. Just like Uber sold it’s business in SEA to Grab and Didi in China, they fail to understand their partners and clients in the region. WeWork business model is flawed because tenants could just jump ship to others if it gets too expensive. Or oven jump home. Co-working space sounds great if only they can concentrate same genre of startup in one place. But most countries already have government backed startup agencies who have coworking space like Singapore, Malaysia or Thailand.
I'm an electrician in San Francisco, and I had the misfortune of working on a WeWork build out. Only one, because they are such a pain to work for, no contractors will work for them twice. And I'm pretty sure The standard size of their offices would be considered a crime against humanity!
Go to the basics, become a customer, simple: when you go to rent the rent is higher compared to independent offices, but you are in a very common space environment, you expect that collectivism makes the price of the rent go down, but its goes up, so look at it this way you can rent an apartment with a shared restroom , living room and kitchen....and the rent is higher then if you rent an apartment with all these amenities private only for you... that is why we works does not make money, its pricing its just not reasonable to the expectation of the customer it is flat out wrong. Not logical.
I agree with most commenters that WeWork does not offer any real innovation; HOWEVER, you have to realize that people are willing to pay BIG MONEY for culture and, let's be honest, our friend Mr. Neumann would make a pretty spectacular cult leader.
I think it's a rare case where the more you expand the higher losses you'll make. Wework cannot guarantee the 15years of occupancy, so seems like it's destined to fail, but I may be wrong.
"WeWorks fexibility"... which flexibility? The 15 year lease flexibility? Also WeWork tries sooooooo hard to proclaim their business as a business in the Tech industry... which it is NOT! Clear branding to sell to fools. Also this video lacks the many pages of conflicts of interests current stakeholders have. The weird dude pretending to be the CEO leases buildings to his own company, tried to have the company buy the rights to the name from him and used his stocks to get insane loans... All that these C-level managers are doing is cashing in and letting the idiots deal with the mess once this balloon gets popped.
To mitigate some risk, WeWork needs to start diversifying their business model to include more land acquisition and subsequent development of their OWN buildings, not developing leased buildings they don’t own. What they are doing now is a recipe for disaster.
Many comments suggest a library, McDonald’s, Starbucks, or working from home using Amazon services. I think too many people are missing the point here. I’m a small startup, marketing company focused on MedSpa arena. It’s me and my partner looking to hire two to three more people, have a creative area, a vibe, an energy, and for potential employees to take us seriously when we recruit them. Having them meet me at my home (current office) and/or public space severely hinders the quality of candidate willing to join a team. We went to look for office space to make our own and prices for shell spaces were out of control, the minimum was $2,000 a month not including any furniture, finish out, decor, etc ... The barrier seemed huge. We Work and it’s competitors seemed like the logical solution for us to get started quickly and grow big enough to eventually have our own finished out space after a year. Also, I’m confused by the video. One graph shows a huge disparity between space they lease and how much of it is occupied but then they say they are 85% occupied a few minutes later.
Im a little confused. Does WeWork own the properties that they are leasing out to tenants or is WeWork leasing the same buildings that they are leasing out?
I’ve been in a we work building and it’s beautiful but crowded (nyc).... it’s good for people starting out their businesses and needed to impress investors or possible clients....
Saying 'WeWork's Business Model Is Risky' is like stating 'Touching Electric Wiring May Not be Great for Health'. Not necessarily a lie, but definitely an understatement. This company is a scam made to profit its CEO, who's already got the money he wanted out of it.
The company has extremely unethical practices. It's very evident at all levels. I have interviewed and had one of the most horrible experiences. They are just hiring like crazy, but lacking quality checks. Extremely incompetent hiring managers.
So is the idea to lease TRANSITIONAL WORK SPACE? because if someone makes it why would they continue leasing? You might lease if you can move up and then obviously buy you're own property. It's basically rent space for upstarts.
Uber is actually a really elegant solution that matches cab demand and supply...WeWork does absolutely nothing other than rent out fancy infra offices...so these two are quite different...secondly even though Uber did not raise as money at high prices, they still raised a decent amount of money...so it was not so bad a failure as people normally believe
What are they bringing to the customers? Amazon brings convenience of at-home service. Uber offers better travel demand and supply matching solution. But I can't think of what WeWork brings. Who are their market? Startup teams need quality people to collaborate and succeed...not expensive offices...Large corporations are rich enough to afford their own space...so who needs these overly expensive spaces and what is the groundbreaking solution they are bringing to the real estate industry. I am not really able to comprehend. To think that SoftBank invested such insane amounts! There must be something phenomenal about it...does anyone know what?
It plays into the trendy, over-marketed stereotype of a startup or tech company sold to wantrepreneurs as a live-in-motion stock photo paradise ... Essentially, it allows millenials to play the charade of "if I look successful, then I am succesful" ... Btw, anyone get the vibe that Neumann believes he's f*cking Jesus!?
There is one thing WeWork offers and I cannot believe everyone misses that. This is like every analysis of Tesla that focuses on Tesla the car company and comparing that with Ford or GM; that is not a fair comparison. Analysts completely miss the “Musk effect”, the effects its public persona has on the company. If you were to remove EM as CEO of Tesla you would lose an important component of its business model which has a cult following to some degree. Similarly WW has something that other companies in the lease rental space don’t have. Not saying this one thing will prevent it from failure but comparisons with similar companies is not a fair one ignoring the subjective aspect of the business
bits of wisdom Also, for my understanding they are changing their business model to stop leasing and start doing partnerships with the building owners. In my city 3 of their 5 locations are not “leased” but they share risk and profit with the space owner. I must say, I was pretty doubtful about hiring private offices with them, but it worked better than expected.
It would be different if they were a traditional real estate development company who actually owned the real estate and used technology and hype to obtain customers. Plus, one-day and one-week leases are models that are in increasingly more demand with so many free lancers and the gig economy. But they are really just a fraud.
The are middleman property rental. Only 10%_20% of start ups could afford such business model. Most start ups are cash strapped, this means, u keep your cash flow controlled by renting a warehouse somewhere else. Coffee? Yea, the gas station in the corner has coffee.
They've focused on only one type of business. Office space. What about all the other business. Imo Restaurants would be a big one. Seasonal stores are another i.e Holloween. Im not sure a company so committed to asking others to think outside the box yet soo set on being in one will survive.
Actually basic model of wework is flawed...example, you have 500 dollar, you want to invest this money into some sector, most effective way of investing and it will minimize the risk is ....after investing you should have real asset in your hand....you should have a solid commodity... some land, some stocks, something solid.....simply rent out property or deallocation of property, is very risky for the stack holder.....and risk is not worthed.....that is why you see,,, initial rapid growth(bcoz of rapid expansion)...but now it will become stagnant (this kind of business needs consistent and steady expansion, which will become difficult at this size, there are alot other factors...etc)....and later it will be acquired by some big property firm.....another factor is backfire from public....bcoz when you lease out property....you basically degrade it market value in longer run....bcoz of lack of consistent flow of cash.....and in some cases keep the properties empty... ...which is not good business to the surrounding or neighbour area.....hence will face backfire from the public.........so on on.....
The CEO has already gutted $700 million from the company. I'm just wondering if I should feel sorry for the people who are going to invest in this trainwreck.
valcarni1 We should, but people will always invest out of greed or ignorance. Is those who got mislead to invested their pension or life savings that I’m truly felt sorry for.
Any entrepreneur who researched a bit about co-work space in their area knows that this co. is a joke. Tons of more feasible n practical options out there. I don’t need the leather couches, rugs, spiral staircases etc. to get work done. Their too high monthly rates are simply unrealistic for majority freelance and startups.
I’m predicting WeBroke in the not too distant future
I laughed more than I should have 😂
Lol
Oh, that's nasty. 😆
Funny, but since they are in 29 countries, that would probably require a global economic crisis. Otherwise there's always be countries where their offices are rented to capacity. Or so I'd assume.
Jean Roch Christ! It was a joke. Get a life, pal! 🙄🙄🙄
WeWork is just an expensive middle man on property management.
exactly
Bezos believed in Amazon though. The WeWork CEO has already cashed out $700 million from the company.
@Null Void Amazon's scale is a competitive advantage, as it truly benefits users (both buyers and sellers). WeWork's scale is meaningless for most customers, i.e. freelancers and small businesses.
@@zetusai how is it meaningless? My impression is that it gives them a place to congregate without spending more for their own personal location
@@given-namesurname5740 I'm not saying WeWork is meaningless, but the global scale of WeWork doesn't bring any benefits to individual clients, who pay to rent a small space in a specific location. Being global allows WeWork to serve more clients, but each individual client doesn't gain benefits from WeWork's scale.
Rents out warehouse and puts in a ping-pong table:
WeWorks: we are a tech company
Investors: Surprised Picachu face
It's like saying mcdonalds is in the fast food business but in reality they are in the real estate business.
They probably have angry Picachu faces right now.
brianmcg321
>I make sandwich
>I use computer
I AM TECH COMPANY, GIVE ME MONEY!
👌🏻
@@Kirito14682 it’s like saying they’re in the real estate business when really they’re in the food business
@@Ghosty716 No. The vast majority of McDonald's revenue comes from real estate, mainly leasing space to franchisees.
Wework is essentially rental arbitrage. Rent for long-term in order to make short-term gains
"We work " .. sorry Kevin
Tucker Sabath WeWork*
@James Franko Wew Ork
Me Twerk *
WeWork is a Lease for Lease real estate business model or in the UK we call it Rent to Rent. Not ideal for long term investment.
The great achievement of this company is how they got this much investment.
Or you could just go to the library for free
or set up your startup in a spare room or the garage. The WeWork clone near my place at the shopping mall never has anyone in there besides the receptionist. Must be a boring and easy job being that receptionist hah.
In my opinion, coworking should be a program offered by public libraries, community centers, and colleges and universities. Why? Because the people who really need coworking can't afford it.
You can’t register your business at a fancy address out of the library or your garage. Unless your garage looks like Jerry Seinfeld’s... just sayin.
Your garage is still part of your house, and thus same address. Steve Jobs & Wozniak started in Jobs garage. Any govt that disallows a garage startup would have been paid off by large corporations to undermine competition.
Business ownership should not be limited to only the already wealthy.
No it doesn’t this business model is for startups and small business how will any library fulfill that?
2:48 but it's unclear what would happen if suddenly fewer start-ups and freelancers were looking for workspace, which could happen in an economic downturn.
Hahha ! Coronavirus !!!
We found out 6 months after this came out lol
Starbucks or Macdonalds are much cheaper and no need to sign a contract
Good luck on trying to have a serious customer call in one of those locations ;)
The Return Of The Giant Hogweed It's called ' Take the call in your car '
For freelancers yes. Not for companies.
Doing work on public wifi is just asking to be hackes and info stolen
I know a guy whose office is under an umbrella at his local beach. Apparently he does not have to pay a cent to work from a beach front location.
going back to this video 4 years later. prophecy.
love working out of WeWork but would def short the stock at IPO
What is IPO?
Peter Lynch would not be proud of you.....
@@wasim41195 search it on TH-cam
Wasim Ahmed the time when a company offers shares of their business for sale to the public for the first time
@@wasim41195
you reminded me of gary johnson's "what is aleppo"
WeWork is the next Theranos: a pseudo "great and innovative idea" based on nothing but good hopes. It's just a matter of time until that bubble bursts. Just wait and see...
No, theranos at least had an idea to do something new. Buying a place, renovating it and renting it out, is not a innovative idea.
Theranos never had a product at all
@@HanZhang1994 Theranos had no product
Theranos products were a modified glue robot and modified Siemens machines...
During a recession this goes down fast
Tiger Morcelu The Word on the street is there’s a prediction of a recession this coming December 2019
RugbyFootballer naw. It’s next yr.
I feel like these similar companies are own by the same group, one bankrupts or not profiting someone buys them out for cheap, and then a new company pops up and continue.
There’s so much noise out there, no one really knows what’s coming
Coronavirus has entered the chat
Let's not forget that some properties that Wework rents are owned by Adam Neumann, the CEO.
But creating the name WeCompany would have been such hard intellectual work... surely he deserved more than $6 million from selling the name WeCompany to WeWork for $6 million. /s
WeWork may still succeed though on their IPO just because I already know people love throwing their money away at hyped up junk. I have a feeling though if their IPO crash and burns, then it could set off a chain reaction to all the dodgy overvalued companies on the stock market. A re-adjustment like what happened after the 2000 crash.
Self dealing at its finest.
Didn’t know that, but thanks for the tidbit. 👍🏻👍🏻
The CEO cashed out $700M ahead of his IPO. What kind of CEO does that? To me that shows a lack of confidence in the company. And the fact that the We Board put in a clause that they can remove him at any time shows me the board lacks confidence in the CEO and his shady dealings. Red flags all over the place here.
He’s a scammer
For once, I found a video that aged well.
Every 15 months they need new customers. 12 bad months and this company would be in the dumps.
NoName small recession and it goes down, fast
It's a walking dead on life support from Softbank and the idiot masi
I am a frelancer and home is the best place to work, doesn't make any sense to rent an office, if i need to meet a client i go to a nice cafe one block away, my business is very profitable without office
@H. Anthony Ribadeneira since when did 12 year olds began doing freelance jobs? besides many freelancers meets their client in coffee shops and discusses things over coffee and the cozy environment. Thats profitable for both the freelancer and the client. thats how it works in 2010s. Jeez dude you livin in 1990s. good luck finding a quality freelancer if you find it embarrassing meeting them in a coffee shop.
@@goodmorningwhyyugei7668 whenever I see someone throw insults, I immediately stop listening to them and just ignore what they’re trying to say because I know it more than likely will be unfounded or very very weak.
WeWork has some nice locations and offices but prices are too high. Cheaper competitors offering prices at a fraction of the prices for contracts as little as 3 months or even monthly. Just like many gym memberships people can get on monthly basisas they do not want to be committed to long BS memberships.
We often say 'no risk no reward' but I think that is suicide for expanding your business.
Couldnt you just sit in a hotel lobby and do this for free?
Yugioh Pokemon lol
Dood atmosphere is really important.
Wework does rent out whole offices to companies or individuals for short term leases.
@@MangoMotors and?...
@@kobrapromotions multiple employees can't all just work out of a hotel lobby, not because of the hotel would kick them out of anything but productivity is tied to morale and work environment.
They provide little to no economic benefit. In their own words, may never reach profitability. Questionable business practices (we work bought new name from own CEO for 6 million).
This company is going to get slaughtered
Daniel Weatherly from what I heard, the founder stays cashing out his stock. Investors money down the drain 😂😂😂
Isn't that unethical? Borrow money for your failing business and then pay It to yourself... or is it family money or something. That would make the guy more to relatable trust fund clients who pretended to be productive members of the market economy.
Tucker Sabath highly unethical. Here’s what happened. He trademarked “We Company” and then decided that Wework should change its name to WeCompany, then sold them the name for 6 million.. very shady business for sure
@@danielweatherly9733 wow, that is not only unethical, it seems to me might be illegal too, strange that he can get away with this.
XJLCA they were a private company which is more flexibility. I have heard that if they do go public, then he would have to pay it back. Definitely unethical, we’ll see what happens
It’s a fraud! Please stay away unless you know what you are doing.
You were right.
Why would you need an office space when you can work from home. Labs or production sites are more important
i don't know how it is in another countries, but in my country the regulation is you need to have a physical location for your business, and sometimes residential area can't be turned into a business location. So that's why office space sharing is a thing.
If all of a company's workers work from home, they'd need professional environment to hold meetings or tests that isn't a library or a cafe. These spaces are incredibly overpriced, but useful, especially for startups.
it is called co working and good for startup
Anyone here after the bankruptcy news?
Yes
WeWork competitors in my country is half the price which is still expensive. WeWork is valued for creating communities in the US but they will have a hard time in other countries with different cultures and values. Just like Uber sold it’s business in SEA to Grab and Didi in China, they fail to understand their partners and clients in the region. WeWork business model is flawed because tenants could just jump ship to others if it gets too expensive. Or oven jump home. Co-working space sounds great if only they can concentrate same genre of startup in one place. But most countries already have government backed startup agencies who have coworking space like Singapore, Malaysia or Thailand.
I'm an electrician in San Francisco, and I had the misfortune of working on a WeWork build out. Only one, because they are such a pain to work for, no contractors will work for them twice. And I'm pretty sure The standard size of their offices would be considered a crime against humanity!
you know, there's something called a library.
I would not invest an enemy’s money in this. Are people blind, this is going bankrupt any sane mind can see through this.
Hmm, we are having fun watching weBubble burst..
Go to the basics, become a customer, simple: when you go to rent the rent is higher compared to independent offices, but you are in a very common space environment, you expect that collectivism makes the price of the rent go down, but its goes up, so look at it this way you can rent an apartment with a shared restroom , living room and kitchen....and the rent is higher then if you rent an apartment with all these amenities private only for you... that is why we works does not make money, its pricing its just not reasonable to the expectation of the customer it is flat out wrong. Not logical.
Oh, oh, looks like We Work is about to become We Don't Work :-(
In my experience most freelancers choose wework for client hunting and once their purpose is done they leave and try another location.
That's why I tried coworking spaces. Three, to be exact. Negative ROI in all of them. So, I am working at home again.
Just forget about the business model, who will make the company public on recession time.
Wework makes a great place for networking and generating leads for many businesses.
Why can't the freelancers work IN THEIR OWN HOME???!!
@Howie Venture they are cheaper and no contracts
I agree with most commenters that WeWork does not offer any real innovation; HOWEVER, you have to realize that people are willing to pay BIG MONEY for culture and, let's be honest, our friend Mr. Neumann would make a pretty spectacular cult leader.
What "culture" are you talking about? That scam artist is nothing more than a pos
Yeaah - cult vibes forsure😂
Ponzi pump and dump. What’s wrong with it lol
Lel
WeWork is the Juicero of rentable office space.
Lol. Nice.
AND…….they’re gone.
when the market crash who's on the hook for all those leases?
Wework shows off how big companies are signing up, while CFOs at big companies are laughing at how they're taking advantages of wework.
I think it's a rare case where the more you expand the higher losses you'll make. Wework cannot guarantee the 15years of occupancy, so seems like it's destined to fail, but I may be wrong.
You’re not wrong.
Bridge to nowhere....so they have $47 billion in dues. ...Soft Bank is a big investor in this cash burning company 😅😅😂😂😂😂😂
"WeWorks fexibility"... which flexibility? The 15 year lease flexibility? Also WeWork tries sooooooo hard to proclaim their business as a business in the Tech industry... which it is NOT! Clear branding to sell to fools. Also this video lacks the many pages of conflicts of interests current stakeholders have. The weird dude pretending to be the CEO leases buildings to his own company, tried to have the company buy the rights to the name from him and used his stocks to get insane loans... All that these C-level managers are doing is cashing in and letting the idiots deal with the mess once this balloon gets popped.
Once the start up companies making money, they will plan their own office space and leave wework
To mitigate some risk, WeWork needs to start diversifying their business model to include more land acquisition and subsequent development of their OWN buildings, not developing leased buildings they don’t own. What they are doing now is a recipe for disaster.
They are making their own housing bubble with too many leases
Would've thought this was just published
>I make churros
>I use computer
I AM TECH COMPANY, GIVE ME MONEY!
👌🏻
Many comments suggest a library, McDonald’s, Starbucks, or working from home using Amazon services.
I think too many people are missing the point here.
I’m a small startup, marketing company focused on MedSpa arena. It’s me and my partner looking to hire two to three more people, have a creative area, a vibe, an energy, and for potential employees to take us seriously when we recruit them.
Having them meet me at my home (current office) and/or public space severely hinders the quality of candidate willing to join a team.
We went to look for office space to make our own and prices for shell spaces were out of control, the minimum was $2,000 a month not including any furniture, finish out, decor, etc ... The barrier seemed huge.
We Work and it’s competitors seemed like the logical solution for us to get started quickly and grow big enough to eventually have our own finished out space after a year.
Also, I’m confused by the video. One graph shows a huge disparity between space they lease and how much of it is occupied but then they say they are 85% occupied a few minutes later.
Dario M-car probably the first chart shows leases over the 15 year period whereas the 85% occupancy is for this year
Those membership fees dont cover weworks costs.
I still do not understand the value.
Anyone can flip an industrial warehouse and rent it. There is no moat or protection from other companies entering.
Im a little confused. Does WeWork own the properties that they are leasing out to tenants or is WeWork leasing the same buildings that they are leasing out?
Mo Khayat wework signs long term leases, Remodel’s and re rents said space at short term leases. Terrible plan 😂
I’ve been in a we work building and it’s beautiful but crowded (nyc).... it’s good for people starting out their businesses and needed to impress investors or possible clients....
This appeared in my recommendation watch list. This video clearly didn’t age well lol
WeWork will NotWork with the IPO
It is interesting to whatch this video in fall of 2020
WeWork and Airbnb should talk
Yeah they are going to file chapter 11 within 5 years
If they supplied all the computers and equipment you need, now they helping people business!
The skeptics were right.
This is lunacy...irrational exuberance it will end in tears...especially for Softbank
You were right
Saying 'WeWork's Business Model Is Risky' is like stating 'Touching Electric Wiring May Not be Great for Health'. Not necessarily a lie, but definitely an understatement. This company is a scam made to profit its CEO, who's already got the money he wanted out of it.
Who likes short shorts, I like short shorts 🎵...
WeWork's business model… not just risky, more likely bogus..
The company has extremely unethical practices. It's very evident at all levels. I have interviewed and had one of the most horrible experiences. They are just hiring like crazy, but lacking quality checks. Extremely incompetent hiring managers.
Its just a fad. Just work at your home office or starbucks. Why would want to add expenses for working?
Why can’t a big company just build out their own space?
They can but they like not to commit to 15-20 year contract. We and Knotel offer flexibility.
Btw, its still a bad business for We
It stays on the balance sheet. And companies don't like that.
Now they're saying this after we all know it's going bankrupt.
So is the idea to lease TRANSITIONAL WORK SPACE? because if someone makes it why would they continue leasing? You might lease if you can move up and then obviously buy you're own property. It's basically rent space for upstarts.
What would happen if a global pandemic happened?
We were optimistic about Uber's IPO once.
Can we say History repeat itself or High Risk High Return principle fits here??
No. Don't compare apples to oranges.
@@GodsNode i dont, bt both are service based industries, what is the base of valuation or backup to sales revenue.
Uber is actually a really elegant solution that matches cab demand and supply...WeWork does absolutely nothing other than rent out fancy infra offices...so these two are quite different...secondly even though Uber did not raise as money at high prices, they still raised a decent amount of money...so it was not so bad a failure as people normally believe
co-working space is now becoming trend. But then, competitors are everywhere...
No future for we work's current model in India
CAFÈ = We work + we eat
it is good for richer homeless shelter. Adding coin showers will make this bussiness perfect.
What are they bringing to the customers? Amazon brings convenience of at-home service. Uber offers better travel demand and supply matching solution. But I can't think of what WeWork brings. Who are their market? Startup teams need quality people to collaborate and succeed...not expensive offices...Large corporations are rich enough to afford their own space...so who needs these overly expensive spaces and what is the groundbreaking solution they are bringing to the real estate industry. I am not really able to comprehend. To think that SoftBank invested such insane amounts! There must be something phenomenal about it...does anyone know what?
It plays into the trendy, over-marketed stereotype of a startup or tech company sold to wantrepreneurs as a live-in-motion stock photo paradise ... Essentially, it allows millenials to play the charade of "if I look successful, then I am succesful" ... Btw, anyone get the vibe that Neumann believes he's f*cking Jesus!?
90% of start-ups fail. If you can't create a billion dollar company at Starbucks, WeWork isn't going to help you
Why don’t they just buy the property instead of being a expensive middle man? Maybe a trade center like New York?
Wsj: “weworks ipo is coming as soon as next month”
Me in 2020: 🤣🤣🤣🤣
There is one thing WeWork offers and I cannot believe everyone misses that. This is like every analysis of Tesla that focuses on Tesla the car company and comparing that with Ford or GM; that is not a fair comparison. Analysts completely miss the “Musk effect”, the effects its public persona has on the company. If you were to remove EM as CEO of Tesla you would lose an important component of its business model which has a cult following to some degree. Similarly WW has something that other companies in the lease rental space don’t have. Not saying this one thing will prevent it from failure but comparisons with similar companies is not a fair one ignoring the subjective aspect of the business
bits of wisdom Also, for my understanding they are changing their business model to stop leasing and start doing partnerships with the building owners. In my city 3 of their 5 locations are not “leased” but they share risk and profit with the space owner. I must say, I was pretty doubtful about hiring private offices with them, but it worked better than expected.
LOL, just LOL
It would be different if they were a traditional real estate development company who actually owned the real estate and used technology and hype to obtain customers. Plus, one-day and one-week leases are models that are in increasingly more demand with so many free lancers and the gig economy. But they are really just a fraud.
Long term lease liabilities paid by short term lease assets. Asset Liability mismatches have sunk many companies.
it's just regus with good looking app
The are middleman property rental. Only 10%_20% of start ups could afford such business model. Most start ups are cash strapped, this means, u keep your cash flow controlled by renting a warehouse somewhere else. Coffee? Yea, the gas station in the corner has coffee.
They don't care as long they can unload it to retail investors
If you want to be productive, blast a joint before you start to code or whatever you are gonna do
Pass me the blunt ...
They've focused on only one type of business. Office space. What about all the other business. Imo Restaurants would be a big one. Seasonal stores are another i.e Holloween. Im not sure a company so committed to asking others to think outside the box yet soo set on being in one will survive.
Hear me out. What if they had purchased buildings instead, and leased from there?
Actually basic model of wework is flawed...example, you have 500 dollar, you want to invest this money into some sector, most effective way of investing and it will minimize the risk is ....after investing you should have real asset in your hand....you should have a solid commodity... some land, some stocks, something solid.....simply rent out property or deallocation of property, is very risky for the stack holder.....and risk is not worthed.....that is why you see,,, initial rapid growth(bcoz of rapid expansion)...but now it will become stagnant (this kind of business needs consistent and steady expansion, which will become difficult at this size, there are alot other factors...etc)....and later it will be acquired by some big property firm.....another factor is backfire from public....bcoz when you lease out property....you basically degrade it market value in longer run....bcoz of lack of consistent flow of cash.....and in some cases keep the properties empty... ...which is not good business to the surrounding or neighbour area.....hence will face backfire from the public.........so on on.....
This really sounds like a miniature case of the 2008 housing crisis
This is why they wanna make it public asap, to cash out before the music stop.
The CEO has already gutted $700 million from the company. I'm just wondering if I should feel sorry for the people who are going to invest in this trainwreck.
valcarni1 We should, but people will always invest out of greed or ignorance. Is those who got mislead to invested their pension or life savings that I’m truly felt sorry for.
How does anybody think this will work in the current economic environment. With stores closing and companies laying thousands of people off.
They’re going to be in business because SoftBank 😂
Softbank's CEO is a tool
There is a downturn and then there is a complete financial collapse. Which is what we are really going through.
In an economic downturn many things would be uncertain as people don't have savings, instead full of loans and mortgages.
If I’m self employed. Why would I pay to go to WeWork instead of a nice public library which is completely free, forever.
Any entrepreneur who researched a bit about co-work space in their area knows that this co. is a joke. Tons of more feasible n practical options out there. I don’t need the leather couches, rugs, spiral staircases etc. to get work done. Their too high monthly rates are simply unrealistic for majority freelance and startups.