Modern Wisdom #238 - Reeves Wiedeman - The Catastrophic Story Of WeWork
Oct 29, 2020
Reeves Wiedeman, an author and contributing editor for New York Magazine, delves into the tumultuous story of WeWork. He uncovers how a dazzling valuation masked critical flaws in its business model, particularly its risky rent arbitrage strategy. The discussion highlights the impact of charismatic leadership, questioning the balance of charm versus substance in corporate success. Wiedeman draws parallels between WeWork and other Silicon Valley failures, offering lessons on accountability and the dangers of rapid growth driven by aggressive investments.
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Unicorn Status
- WeWork is classified as a unicorn company, meaning a private company valued at over $1 billion.
- They are considered magical creatures existing outside traditional market valuations.
Scooter Company Struggles
- Electric scooter companies like Lime and Bird saw rapid valuation increases, sometimes doubling every six weeks.
- Reeves Wiedeman struggled to use a scooter app, highlighting a disconnect between valuation and functionality.
Startups in the Real World
- Silicon Valley startups are increasingly interacting with the physical world, impacting cities and policy.
- This shift forces them to engage with real-world issues like city councils and regulations.
