WeWork has filed for bankruptcy, however WeWork India is growing?
Is it a question of market approach or is it something else..
WeWork has filed for bankruptcy but WeWork India seems to be doing pretty well. This has prompted a bunch of questions, such as this one shared by Bismah Malik, a prominent journalist from Inc42
India isn't a better market for co-working or higher startups than the USA. It is because WeWorks' main expenses have been -
1)Marketing
2)Discounts
3)Salaries
And in all those it ran it like a wannabe tech startup. In India, you hardly ever saw any of that because it was run by a real estate business.
The key insight here is to realize what business you are in.
And while that may seem simple it often is a game changer, eg the day Uber decided it wasn’t in the cab business but the transportation businesses it changed its vision,its growth trajectory and its valuation.
CoWorking isn't a bad business model but it's not a tech model either. All the WeWork wannabes in India who were bought, and their acquirers are struggling with getting their money's worth.
And now none of them run like a tech firm mentality. And that’s the difference.
Written by - Saurabh
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