JAMIE CARR: WeWork brings disruption to the workspace
WeWork has managed to take the idea of shared office spaces and transform it into a valuation that has seasoned sector watchers scratching their heads in bewilderment
The concept of the shared office space is hardly revolutionary, but WeWork has somehow managed to take the idea, sprinkle it with new-age disruptive fairy dust and transform it into a valuation that has seasoned sector watchers scratching their heads in bewilderment. Japan’s SoftBank stuck a further $1bn into the company last week at a valuation of $20bn, but this could rise to a cheeky $35bn if a mooted investment by the Saudi Arabian-backed Vision Fund gets off the ground. These are punchy numbers given that the company lost $723m in the first half of the year, a hiccup it attributes to the timing mismatch between when it incurs costs to renovate a property and when the property opens for business. It is clear that the company’s product is hitting the spot with its target market: occupancy rates are up at 84% from 74% a year earlier, even while it is opening new properties as fast as it can get its mitts on them. The company’s website constantly emphasises that it offers not just ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.