[tempsy]

Nah, this isn't like Theranos.

In reality, it is a very good product with slim margins. The reason it is losing so much money is because it is expanding quickly to show that it is a "high growth" Unicorn company.

It isn't that it's a scam, it just puts it is a non-tech/non-SaaS category. Every founder/CEO wants to tell a huge growth story. If private investors are buying that then it's just that they miscalculated, but not defrauded.

[tyingq]

It's also losing money because the CEO is converting it to personal wealth.

[bhouston]

Slim margins means it isn't a great product, at least by standard business definitions.

A product with slim margins is one that you divest from so you can focus on the products with good margins.

[the_watcher]

There are lots of good businesses that operate on thin margins. They're good businesses, which is why you can divest them to investors who want to run a good business. What they're not are businesses that should trade at anything close to software revenue multiples.

[tempsy]

I was referring to the quality of the product from the customer POV.

[smacktoward]

From the customer's POV, selling dollar bills for fifty cents each is also a high-quality product.

[tempsy]

No not really. Again, they lose billions right now because it costs a lot to build out new buildings. Then as a building matures they recoup these costs through the memberships. The more mature offices are profitable. It just isn’t necessarily tech/VC level profits.

[throwaway2048]

They aren't building out anything, they lease existing office space.

[AlexandrB]

MoviePass was an amazing product from the customer POV. Not a viable business though.

[purple_ducks]

They rent office space.

[michaelt]

If you think office space doesn't vary in quality, you haven't worked in a very wide range of companies :)

[icelancer]

Or rented from Regus, which is a company that people are just now finding out about. Their offices are absolutely embarrassing.