Why WeWork wouldn't be profitable?

Oct 9, 2019 44 Comments

Regus is a profitable Co working company with less revenue (3.2B 2018).
Why do you think WeWork won't be able to pull it off?

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TOP 44 Comments
  • Compass LInR08
    Shouldn’t you be telling us???? No wonder you guys went down the drain.
    Oct 9, 2019 1
    • Amazon / Eng 🦄..
      Compass vs WeWork

      Fight! Fight!
      Oct 13, 2019
  • WeWork / R&D lordmunch
    OP
    I think we can be profitable, there's huge demand for the product, and Regus showed profitability exists in the model.
    But wanna hear what you think
    Oct 9, 2019 9
    • F5 Networks RRA
      I'd still have been old enough to not fall for the Neumann scam. Unlike you.
      Oct 9, 2019
    • New / Mgmt
      xsAS42

      New Mgmt

      PRE
      PARC
      xsAS42more
      Wework is most likely upside down on most building deals and leases. They also seems to spend more on interior design and accommodations/amenities than other coworking spaces. There are also a high number of competitors in all major cities now, and bare bone commercial landlords know the market and are less inclined to play nice. Also Neumann has tainted the brand heavily and remains on the board. He can't pull a Donald Trump and just keep going because this isn't his daddy's company that got handed down to him, there are a large amount of powerful shareholders and debt holders here. It was an actual business.
      Oct 9, 2019
  • F5 Networks RRA
    Bad leadership, for one...
    Oct 9, 2019 0
  • Amazon KajsIq
    First, realize that you are not a tech company. This realization is going to solve problems for companies like Uber, Lyft, WeWork. Amazon.com (not AWS) is also not a tech company and it realized that way back, which is why it is afloat.
    Instead of pouring money into engineering, spend money for what matters- your product and what customers want.
    Engineering can be outsourced rather than paying 180k base to engineers in Seattle. Seattle is an expensive market for hiring engineers currently.
    Oct 9, 2019 3
    • Amazon KajsIq
      That's mainly due to AWS
      Oct 9, 2019
    • E*Trade / Finance cbEV72
      I’m not sure about that. Aws alone can’t explain your P/E ratio for instance.
      Oct 9, 2019
  • Amazon / Eng Batman!!!
    1. Regus CEO doesn't rent his property to Regus for personal gains.
    2. Regus didn't buy right to it's name from a shell company its CEO setup to pocket quick profit.
    3. Regus isn't trying to raise world consciousness or any other cult stuff.
    4. Regus doesn't fancy around as a tech company and burn money like no one's business.

    I know its old news that came out, but it's just the way company was setup and run. Huge liabilities that the company holds. Maybe company can turn around but looking at the liabilities and cash needs, chances are slim.
    Oct 9, 2019 1
    • E*Trade / Finance cbEV72
      I think at the moment the view is that they’re still a going concern. Some tough cost cuts and rethinking of business model is in order. They should be valued as real estate firm in my opinion.
      Oct 9, 2019
  • Twitch have
    Are you an engineer at WeWork? What do you actually build? I’m genuinely curious what engineers at WeWork do.
    Oct 9, 2019 2
    • Amazon KajsIq
      They have a zillow-like website for finding office spaces, which offer 360 views of the spaces. They also build some of the software/hardware for smart offices I guess. Figured this out from their job descriptions. Definitely sounds some interesting work.
      Oct 9, 2019
    • WeWork / R&D lordmunch
      OP
      Specifically our team works on automating billing processes to make better customer experience, reduce manual work for scalability, (i.e. increase margins), reduce risk, help global growth, and more
      Oct 10, 2019
  • OpenTable Meliodas
    Because WeWork’s expenses exceed its income.
    Oct 9, 2019 0
  • E*Trade / Finance cbEV72
    The answer is expenses. You got to cut expenses now that you’re not trying to raise world consciousness
    Oct 9, 2019 3
  • HBO
    Grunt_

    HBO

    BIO
    Username is an insult for Jonah Ryan (Veep!) that didn’t make it to air.
    Grunt_more
    It would give me more confidence if WeWork had a better handle on their financials and their plan to become insanely profitable.

    I suspect they’ll undergo a similar transformation as Uber- leadership and executive culture more palatable to wall st.
    Oct 10, 2019 1
    • Amazon dodobsj
      U r not far Hbo. Att has 150 b in debt
      Oct 15, 2019
  • If their debt is structured poorly (aggressive growth), plus lack of growth in small businesses, I could see how profitability is impossible in the short term.
    Oct 9, 2019 1
    • WeWork / R&D lordmunch
      OP
      Interesting
      Oct 9, 2019

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