We need this in Toronto
A 30 sec search for "coworking toronto" shows me many coworking spaces in your city.
Massively overpriced, a private office in a Toronto coworking space starts at 2x what wework charges
WeWork: Now a $5B Co-Working Startup
31–32 of 32 posts
Re: WeWork: Now a $5B Co-Working Startup
#32This company provides inspirational, collaborative, nice office spaces for very high prices (compared to traditional office space). Their outsized profits will encourage competitors to enter the space and undercut them on price. Is there a way they can defend against that? - Their events provide some sort of network effect and marketing - The current group of startups provides some sort of network effect Still, their…
I suspect that if you ask them they will say that there are network effects in that a) you can travel and use other wework spaces with a single membership and b) you get access to a community to hire from, seek advice from, network with, etc. For me those would not command a large price premium and so am incline to agree with you that it's not very defensible.
That said, a capital heavy business like this doesn't need as much defensive power as a tech company. Very few challengers will have access to the capital needed to compete with wework at scale (and there are scaling benefits here) so the competition won't be crippling.