The answer is definitely in the data, it's just obfuscated at this point.
The question really boils down to unit profitability. If their 'already built out' offices are positive cash-flow businesses, than all this working capital expense makes sense. If not, no.
I don't really think there's much of a platform effect, rather, brand, and that people know they can go somewhere and get what they expect for their offer.
It's a decent concept given the degree of churn in businesses these days, and everyone wants at least a decent place to hang their hat during the day.
When we were there, there was supposed to be some kind of network of WeWork-resident and WeWork-adjacent businesses, like that you'd get your health insurance through a TriNet deal brokered through WeWork and stuff like that. It wasn't a serious offering and had nothing to do with why we took the space (reason: cheaper than the market, with better terms, until we were big enough to make an office cost-effective), but I suspect that's part of the "platform" WeWork hopes to build. It won't work, unless they make a bunch of ambitious acquisitions.
The question really boils down to unit profitability. If their 'already built out' offices are positive cash-flow businesses, than all this working capital expense makes sense. If not, no.
I don't really think there's much of a platform effect, rather, brand, and that people know they can go somewhere and get what they expect for their offer.
It's a decent concept given the degree of churn in businesses these days, and everyone wants at least a decent place to hang their hat during the day.
But it's also easily subject to pomp and hype.
Only the accountants really know :)