WeWork faces Chinese challenge
Office sharing platform, WeWork, is planning on opening five locations in China by the end of this year, however it may struggle to face up to well-established, local competitors in what The Information refers to as an “over-saturated market”. Local players have better connections, and thus better access to favourable real estate leases, more in-demand addresses, and complimentary businesses to take advantage of any possible competitive edge.

After six years of disrupting co-working markets in the U.S. and around the world, WeWork may have met its match in China, where local, well-connected players compete fiercely for tenants in an oversaturated market.

WeWork is planning to open five locations in China by the end of 2016, said Ole Ruch, managing director and head of operations at WeWork APEC in an interview. But to gain market dominance in China, WeWork must displace the market leaders which have leveraged their connections to get favorable real estate leases and developed lucrative side businesses to snatch up every possible competitive edge. WeWork is one of the most highly valued private tech companies, last raising money at a $16 billion valuation.