Similarly Lyft made an impact with investors as its IPO met a valuation of $24.3bn, but saw its stock promptly fall. Ride-sharing company Uber priced its shares at $45 each, giving it a valuation of $82bn, when it went public in May 2019 - despite 2018 losses of $3bn.
The company was valued at $47bn in January, following a $2bn investment from the Japanese conglomerate SoftBank.Įxorbitant valuations in the face of sizable losses are not unusual for sharing economy businesses. Co-Founder and CEO of WeWork Adam Neumann (Credit: TechCrunch/Flickr) However, operating costs remain the company’s main expense, with $1.2bn spent across its 528 locations. WeWork, which was re-branded in January to the WeCompany to accommodate its ambitions to expand into new sectors, doubled its revenue in the first six months of 2019 to $1.5bn. “Losses are steep but investors should think in the five- to seven-year range.” “The challenge will be having enough cash for expansion while building up a momentum of single professionals and start-ups seeking a community for their work environment. Wang said: “WeWork has the ability to create the Airbnb of the commercial workspace and displace the Regus’ of the world.” New York company WeWork has grown rapidly since being founded in 2010 with a raft of new hot-desking locations but this week revealed net losses exceeding $4.9bn between December 2016 and June 2019 in an IPO filing report. WeWork could become the “Airbnb” of shared office space rental, despite concerns over funding to underpin its growth, according to one analyst.Ĭonstellation Research principal analyst and founder Ray Wang believes it has the potential to be bigger than traditional flexible office providers such as Regus, a multinational corporation with a foothold in more than 3,000 business centres across 120 countries.
Despite revelations WeWork is operating with significant losses, one analyst says it has potential to become a world-leading service provider.īig losses, but a big future, according to one analyst
0 kommentar(er)
