As an ex-employee I am indifferent to WW’s success or failure, but to set a few things straight, very few of their members are on month to month deals. The larger deals they do for corporates are often multi-year commitments.
As long as a sophisticated large corporate sees a net benefit of being in a wework they will stay.
As an analogy, everyone knows running servers on AWS is more expensive per unit of compute than running your own hardware, however, there is a genuine value for a company to hand off the running of an office space (and the capital investment on buildout) to a third party in exchange for predictable monthly opex.
Comments
Their income stream is month-to-month and can disappear quickly in an economic slowdown. Their lease liabilities have a timescale of years.
As an ex-employee I am indifferent to WW’s success or failure, but to set a few things straight, very few of their members are on month to month deals. The larger deals they do for corporates are often multi-year commitments.
As long as a sophisticated large corporate sees a net benefit of being in a wework they will stay.
As an analogy, everyone knows running servers on AWS is more expensive per unit of compute than running your own hardware, however, there is a genuine value for a company to hand off the running of an office space (and the capital investment on buildout) to a third party in exchange for predictable monthly opex.