WeWork Is Not Like Uber – States CEO

New York, New York, USA - March 28, 2019: The Wework location on 40th street near 6th Avenue. People can be seen walking and standing on the street.

Just a couple of days ago, in May 2019, numerous companies hit IPO. Some of them, unfortunately, had a bad time and these are WeWork, Uber, and Lyft. Uber and Lyft saw some major losses and were predicted not to be profitable in the next couple of years. WeWork suffered a similar fate, with the predicted losses of $1 billion a year.

WeWork is Not Like Uber!

WeWork’s CEO clearly stated that he doesn’t want to WeWork to be compared to Uber or even Lyft. Sure, these companies suffered some losses but as the CEO says, Wework business model and practice are quite different. On top of that, the CEO said that these companies are huge money losers and that WeWork, in his eyes, isn’t anywhere near Uber and Lyft.

Adam Neumann, the WeWork’s CEO, says that their losses were led by marketing costs and development only, unlike Uber and Lyft, which lost their money at the IPO. Let’s remind ourselves that Uber and Lyft won’t be profitable anytime soon, which is a great chance for some upcoming companies to take their place.

WeWork is Still Holding Up – Unlike Uber

In May 2019, the office-sharing startup reported a huge loss of $264 million in the first quarter of 2019. But, as WeWork says, their revenue doubled to more than $728 million. Their loss, which was $274 million in 2018, was reduced to $264 million in 2019, which is decent progress. Furthermore, WeWork stated that the development costs tripled to $160 million, as well as marketing expenses, which almost doubled.

Final Thought of WeWork

To that, WeWork’s CEO says wework business model is different than Uber. The CEO had to add that they’re not like Uber, once again. Uber’s shares have fallen since the initial IPO offering and that’s what makes Uber inferior at the moment. With all the suffered losses, we’ve yet to see if WeWork is going to do some damage at the upcoming IPO.

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