WeWork says it has 527,000 'memberships' but that's not as straightforward as it seems - Business Insider

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WeWork says it has 527,000 'memberships' but that's not as straightforward as it seems

Additionally, 6% of WeWork's 527,000 memberships includes those who do not have a permanent workspace but are on-demand customers. They pay a small monthly fee, typically $45 a month, which gives them access to the office twice a month.In practice however, WeWork's space-as-a-service arrangement still looks an awful lot like a classic per-square-foot lease. That's because WeWork has predetermined the number of workstations, or employees, that can fit into each office space.

"The amount of members that WeWork portrays is not the amount [of people] that they actually have," one employee explained to Business Insider. "WeWork is committed to providing our members around the world with a better day at work for less. Our space-as-a-service membership model provides organizations of all sizes with community and flexibility, at a per employee cost that is up to 57% less than the cost of a standard lease and operations," a spokesperson told Business Insider.

WeWork also says that a "net retention" rate of 119% indicates that its tenants are happy with the situation.

 

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