The office-space company WeWork announced that it was postponing its initial public offering this week, a reaction to a sharp decline in its reported valuation from $47 billion a few weeks ago to less than $20 billion today.
In many ways, the company’s four-week tailspin has been a one-of-a-kind spectacle. Documents filed in anticipation of its public offering revealed a pattern of behavior from its founder and chief executive, Adam Neumann, that fits somewhere on the spectrum between highly eccentric and vaguely Caligulan. In one lurid example, Neumann insisted that WeWork change its name to the We Company, a title he had already trademarked, thus allowing him to charge his own company nearly $6 million for the shotgun rechristening.
But in at least one way, WeWork (as I will insist on calling it) is utterly familiar, even emblematic of this new age of unicorns: The company is bleeding unseemly amounts of money. WeWork is on pace to lose well in excess of $1 billion this year. Like so many buzzy start-ups in the consumer-tech division, the firm is popular, growing quickly, and deeply in the red.
Read: How WeWork has perfectly captured the Millennial id
If you wake up on a Casper mattress, hail a Lyft to get to your desk at WeWork, use DoorDash to order lunch to the office, hail another Lyft home, and have Uber Eats bring you dinner, you have spent your entire day interacting with companies that will collectively lose nearly $13 billion this year. Most have never announced, and may never achieve, a profit.