PITTSBURGH (KDKA/CBS NEWS) — WeWork, the office-sharing company that has redfined the modern office space has now redefined how quickly a company can lose its value.
According to IPO documents released by their parent company We Company, the company loses around $5,197 per customer per year and has lost more than $1.3 billion in the first half of this year. This equals out to roughly 94 cents per minute.
According to our news partners at the Pittsburgh Post-Gazette, WeWork had their sights set on Pittsburgh late last year.
WeWork’s business model, however, isn’t one designed for sustained success.
Essentially, they will rent out office buildings, spend a lot of capital to modernize the building and then re-rent the space to various startup companies.
Compared to other IPOs, WeWork’s losses are relatively modest. For example, Uber has lost $6.5 billion from operations.
However, what keeps investors concerned is the fact that office space is far more expensive than a single car ride. Much like Uber and Lyft, since going public, shares of the company have decreased.