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The Death of a Co-working Startup Highlights User Experience vs. Unit Economics

Stroll through any major city in the United States and you’re sure to find an excess of completely built out, potentially useful, vacant spaces. Whether it’s a restaurant only open for dinner or a vacant retailer, there is no lack of finished, usable space.

Spacious saw these vacancies as opportunities and sought to occupy them by creating cost effective co-working spaces that also generated additional income for landlords. Primarily, they found restaurants that were closed during the day and converted them into co-working space for urban professionals.

This business model was appetizing enough for WeWork (renamed The We Company) to acquire Spacious for $42.5 million this past August. Fast forward four months later, and as of December 31st 2019, WeWork shut Spacious down. What went wrong?



Photo by Crew on Unsplash

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