ItWorks?

I mentioned the rapid growth of Wework a few months ago – a kind of “If Carlsberg managed your office” operation. It’s now expanding into China.  I’m still struggling to see what WeWork’s unique competitive advantage is.  With a recent deal implying a valuation of WeWork at $16 billion, the pricing contrast with Regus is pretty startling. According to the FT Lex Column,

In keeping with the bubbly trend for unlisted start-ups, the pricing is frothy. Regus, a UK-listed flexible workplace provider, is valued at just $4bn. That company claims 3,000 centres in 120 countries with 1.5m members. For a valuation four times as large, WeWork — still mainly US-focused — has 77 spaces in 23 cities to service its 50,000 customers.

Whilst I’m not sure how comparable the numbers are in terms of members/customers or spaces/centres, I suspect that I’d be investing in Regus rather than Wework over the long term.

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