COVID-19 pandemic has wreaked havoc over the global economy. The worst sufferers are young Indian startups who have been going through quite a hard time. There are many young Indian startups which have been facing several issues because to contractual technicalities and indifference from WeWork.
Just about a few weeks and a global pandemic that the strategy became a deterrent for customers and a also becoming a big liability where the company has no scope for any further setbacks. Most of WeWork offices are open, however, there are hardly people coming in than before.
WeWork customers are required to pay 30% of the rent during the lockdown period which was started on March 25, 2020. This does not mean that customers are getting a discount of 70% in the rent but WeWork is offering to give a credit equivalent of 70% to their existing contracts. Therefore, customers will continue paying the entire amount of monthly rent despite not using the co-working space. After the lockdown ends and things stablize, WeWork will add the extra days to their contracts which is equal to 70% of the rent for the days its offices remain shut.
With all the current loss in the business for the startups, WeWork is adding to the hard time and taking rent despite the offices are closed. If this continues, many of the startups will face a huge loss and in the verge of closing.
