Its competition is a 'plug at Starbucks': Billionaire investor Sam Zell says WeWork is the 'Enron of real estate' — and explains why similar models are also doomed to fail
"What was WeWork's competition?" he said. "It was a plug at Starbucks. In other words, the guy came and he occupied a desk from you. But if things got tough, he went back to Starbucks and plugged his computer into the wall and he was in the coworking space."
"The question that I keep asking people about WeWork was: 'Just tell me the cash flows that WeWork generates — what do they come from?" he said. "Do they come from profits in other businesses, or do they come from venture capital? Which in effect, doesn't have the discipline of profitability."
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