Money

I Saw the Gig Economy’s Bleak Future During a 96-Hour Work Marathon

The tech world’s obsession with productivity is quietly remaking the workplace, and freelancers are paying money for around-the-clock accountability.

by Josh Gabert-Doyon
Nov 8 2019, 2:07pm

Photo by Nicole Honeywill / Unsplash

When Frederick Winslow Taylor first sped up assembly lines and tested his idea of “scientific management” on factory workers in the early 1900s, it was, at least initially, a big hit. Taylor’s speed-ups, his techniques for breaking up work for more efficiency, were seen by workers as a way of getting the boss off their back. Workers were excited for more free time thanks to their improved efficiency, so the story goes.

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But things didn’t turn out that way. Taylor’s speed-ups just meant working faster and making more stuff. Workplace productivity—as anyone who’s worked a service industry job will know—doesn’t mean you get off early. Taylor’s theories would eventually have gruelling impacts on the modern workplace. Those factory workers would organize unions to fight off the dehumanizing nightmare of time management; they would walk off the job and resist the stopwatch any way they could.

This is one of the facts I found out while procrastinating during a regular “Work Marathon” organized by a startup called Ultraworking—a four-day continuous video conference call for which freelancers pay $100USD to quietly sit and do work together in the hopes of becoming more productive, more conscientious digital workers.

The time management method is meant to develop what co-founder Kai Zau calls “mental ergonomics.” It’s virtual coworking in a 30 minutes on, 10 minute off “Work Cycle” spiced with a self-reflection spreadsheet. The startup claims that people who use Ultraworking’s methods have seen gains of two to four times their normal productivity. During these Marathon sessions, there’s no collective task or project. Instead, you pay money to enjoy the luxury of joining a large Zoom call where people are meant to keep each other focused. The stares of other people—what Ultraworking calls “social accountability”—are meant to replicate the discipline of the traditional workplace. You can come and go as you please during the Marathon, and nobody stays consistently online for four days, but the point is to log on for large chunks of time, in a state of productive bliss.

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Just like the workers in Taylor’s factories, the devotees of Ultraworking see these Work Cycles as a transformative, liberatory tool to let the average freelancer take back control. It became, during the course of four days, my absolute nightmare vision of working from home. The question is: what would it mean if the devotees of Ultraworking were right? What if it really did mean a chance to change our everyday work life?

The first tip-off that something was weird with Ultraworking came from the fact that it started at 12:01 a.m.—at least in the East Coast time zone where I was participating. I was at my parent’s house at the time, staying in the room where I grew up. At 11:55 p.m. I squeezed my legs under a cramped desk surrounded by high school posters and old Christmas cards, and waited for the session to start. Because it was international, there was no regard for anyone’s time zone. This was the world of freelancing, and there’s no telling where the workday ends, and where another begins.

When the call finally went live and the moderator of the first session started speaking, I couldn’t hear him. My end of the video conference was glitching, and all I saw was his mouth moving, along with the faces of the other strangers participating in the session. When his audio came in, I realized that the mic on my end of the conference call was muted, and would remain muted for the duration of the Marathon. My screen was a Panopticon of bedrooms, coffee shops, and co-working spaces, with freelancers participating from around the world. An Ultraworking moderator ushered participants through a cycle of concentrated work followed by a 10-minute break, when we filled in a spreadsheet tracking tasks, distractions, and energy levels.

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The first moderator was Sebastian Marshall, another co-founder of Ultraworking, who acts as a productivity guru, advising participants on tactics to boost their freelance efficiency. He speaks with the smug, wry tone of a young tech entrepreneur who’s found what he’s good at. As a freelance writer and something of a masochist, I spent the first cycle trying to work on an article pitch, firing up a Google doc and installing a Facebook newsfeed blocker before fucking off and getting distracted. I found myself hyper-aware of how I was optimising my time, fixating on the clock and trying to ignore the fact that it was the middle of the night.

During a 10 minute break period, the moderator enlisted a participant to talk about their work as a check-in. Over the course of the four days, we heard from a copywriter living their dream of work flexibility in South East Asia. We heard from someone trying to write a book, ploughing through dozens of pages a day—the most productive in their life, thanks to Ultraworking. We were instructed to drink water and to stay focused. Some people stood up during the breaks to do discreet jumping jacks and Wim Hof breathing exercises.

Ultraworking was founded by Zau and Marshall, who met while studying at university in Boston. The startup is part of a growing cottage industry of tech companies geared towards a freelance economy. There’s WeWork, the flailing coworking giant, Focusmate, which pairs you with a virtual work buddy and promise a “Community of Doers.” project management tools like Complice, and cutesy-sounding startups like 17Hats, which help with invoicing.

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The tech world is rolling out tools—some flashy, some surprisingly basic—that try to offer the solitary worker a sense of managerial control once provided by conventional workplaces. Ultraworking fills the void of productivity and time management that used to be filled by simply working in a team, for an employer, with a clear sense of whether you’d still have work next week. In the process, they’ve laid stake to the future of work.

By Zau’s own account, very few of the people who use Ultraworking work a nine-to-five job, and very few of them have any semblance of what we would call a healthy work-life balance. Some people are reluctant about work, Zau explains, “on the other end of the spectrum there are people for whom work is equated with purpose, work is equated with meaning.” Zau is clearly in that second camp.

The spreadsheets that structure those 10-minute breaks are meant to make you think about the value and meaning in the work you do. The whole experience becomes, at points, debilitatingly self-conscious. I found myself constantly assessing each task, too self-aware of my progress to get anything done. I stared out my window for an entire 30-minute session just to see if anyone says anything. And—they don’t. You’re on your own, and it feels horrible.

But this is also where I start to realize that there’s a contradiction to these Work Cycle sessions. Between procrastination and self-monitoring, there’s a promise of something different, of a system which helps you work faster, and then be done with it. It’s a demand that political theorists on the left have started describing as “post-work.” And if you forget about the $100 signup fee, there are some compassionate measures in place for you, as a runner of the Marathon. If you fail to meet your cycle goal for three cycles in a row you’re prompted to choose an artificially easy goal to boost your confidence. Even as a small gesture, it points towards a different future for work—one where we can cut ourselves some slack, and feel less pressure to produce.

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For Zau, Ultraworking is filling a demand made by remote working and precarious digital employment. He describes, in about 10 different ways, the Marxist definition of alienation using cool-guy tech lingo. “There's a lot of friction and a lot of confusion that comes from not knowing why you’re doing something, not knowing how today’s work ties with tomorrows work, ties with next week’s outcome, ties with everyone else’s work, ties with this North Star purpose of your company or your project.” This is exactly what’s driven demand for services like Ultraworking. Gamifying work, by giving it clear parameters and rewards is the way to turn it into something meaningful, Zau explains.

Selling productivity services to other businesses is the next obvious step in the path towards Ultraworking’s productivity utopia. On the company website, a section named “Enterprise” markets the product towards businesses hoping to make their team more productive—a prospect that opens the door to some rather serious digital workplace monitoring. WeWork, for its part, has openly admitted to tracking workers habits and amassing valuable data about how people use their coworking spaces. Zau says that while Ultraworking’s enterprise section hasn’t gotten much interest, business clients are something that the company is hoping to explore. The potential for workplace surveillance like this could undo a century of labour movement progress in a couple of distraction-free Work Cycles. During the Marathon the idea of this—of my employer being able to read over my Work Cycle questionnaires—feels deeply unsettling.

Mid-way through the four-day work Marathon, the structure breaks down, at least briefly. One of the workers invited to speak about their experience during a scheduled break used their time to talk about their struggles with mental health—manic episodes in particular, confessing that a fixation on work as a freelancer has contributed to those tendencies. Suddenly the neglected chat function on the side of the conference call filled with messages from other participants, who confess similar difficulties, with ADHD, depression, and a host of mental health conditions that intersect with their work life. Strangers start dropping in their emails into the chat, offering to discuss more offline. For a brief moment amid the work, the space fills with collective potential. When the 10-minute break is up, everyone puts down their heads and gets back to their respective tasks as if it never happened.

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An Ultraworking early adopter, Mony Chhim is one of the participants who put his email into the chat during that break, offering to speak with people in case they wanted to talk about productivity and ADHD. Chhim is a digital marketer and copywriter living in Lisbon, and his workday is composed exclusively of 30 minute on, 10 minute off Work Cycles.

The method clicked for Chhim instantly. He cherishes Ultraworking’s “social accountability.” With the Work Cycles, his productivity shot up, and instead of taking on more work, his workday decreased in length. “I’m doing, on average, 8-10 cycles a day. That's less than five hours of actual work. And I still manage to have a really nice output,” he told me later. “Two times in my life I’ve tried to work myself to death. You do that—hustle your face off, because you feel like if you don’t then you aren’t an entrepreneur. And those two times I ended up miserable, depressed.”

Since then, he’s actively tried to change how he works. "The output is much more important than the number of hours,” Chhim explains. “Working 12 hours in a day, to me it’s really stupid, its just virtue signalling. Your clients don’t give a shit, they just want results.”

Chhim is sharp, and a bit bashful. From the video call his apartment looks balmy and coastal. Chhim was working as an engineer in a conventional workplace before he read Tim Ferris’ The 4-Hour Workweek, a book which set him on a new career path. The self-help guide is a classic in entrepreneur self-help circles, and Chhim’s bookshelf offers a short history of the thinking behind tech world productivity. He’s tried Benjamin Franklin’s famous workday routine (as seen on Lifehacker), the Pomodoro technique—an 80s time management technique offering basically the same structure as Ultraworking—and digital hygiene apps like Selfcontrol and Freedom. He wears an Oura ring to track activity and sleep. He’s a devotee of the Stoics, the school of ancient philosophy that’s taken off in Silicon Valley, and counts Viktor Frankl Man's Search for Meaning—a Peak Performance mainstay—among his favourite books.

Another big reference point? Ultraworking co-founder Sebastian Marshall’s book, as well as the blog he keeps. "Do you know about the Lights Spreadsheets?" Chhim asks me midway through our call. The Lights Spreadsheets is a task-management tool developed by Marshall, and both Zau and Chhim mention it to me when I interview them. It’s meant to encompass your entire life. Using the Lights Spreadsheet, Marshall has tracked every aspect of his life meticulously on a Google spreadsheet for the last three to four years. The very idea of work-life balance becomes just another item to tick off in the pursuit of higher productivity.

But when Chhim is talking about Marshall’s blogging about productivity, he seems incredibly genuine. As bleak as it may sound, the work productivity community have access to a set of tools that make it easier to get work done fast. It’s a special set of privileges and an education in its own right. For Chhim, these are the tools that have helped his mental health, and let him take more time for himself. As we advance towards a future with more freelancing, more remote work, and more automation, it's the possibility of redirecting time management away from entrepreneurial self-help and towards a collective reassessment of the meaning of work, that might be Ultraworking’s seed of liberation.

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In the Marathon, we’re taught new parables of work: stories about a full month of endless productivity, phone call interruptions, big projects that are “shipped” in states of productive flow and intentionality. Like the first guinea pigs of modern productivity working in Taylor’s factory, the dream here is for everyday autonomy. There’s no celebration for the end of the marathon, the Ultraworking team informs us in the afternoon of the fourth day. The moderators don’t want people to stay online late. The last hours tick by, and then the Zoom call ends, leaving the screen black.

Follow Josh on Twitter.

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Money

The Gig Economy Screws Over Everyone But the Bosses

It keeps wages down and the majority of gig workers would prefer the security of a full-time job, a recent report says.

by Anne Gaviola
Jul 24 2019, 6:42pm

Photos via Shutterstock

Alex Kurth has never worked a typical 9-to-5 job, and he says he’s mostly OK with the fact that he never will. The 36-year-old Toronto resident cobbles together a living made up of four different gigs: he bartends at a craft brewery, is a sound technician, delivers takeout for Foodora, and he’s a representative for his fellow bicycle couriers who are unionizing.

Between his four jobs, he usually works between 30 and 40 hours a week, which makes him about $30,000 CAD a year. Kurth said his hustles don’t give him much when it comes to job security and benefits like health, dental, paid vacation or sick days. “Companies have realized that they don’t need to have dedicated, salaried, 9-to-5 with benefits employees and just treat everything as gig work. They can get away with that and there seem to be no repercussions. Everybody is a temp, short-term contract, or freelancer,” he said.

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36-year-old Alex Kurth works four different jobs and makes around $30,000 a year. (Photo via Tess Siksay)

People like Kurth reflect a shift in the way millennials and Gen Z work—nearly 60 percent of 18-24 year-olds are part of the gig economy, according to a Bank of Canada report. A bunch of side hustles, contract work, and freelancing were part of previous generations’ entry into the workforce. But labour experts say this trend is growing and is less likely to be a stepping stone to stable, full-time employment at one company—rather, it’s going to be the norm throughout a person’s career. And this trend hurts everyone, other than the people doing the hiring.

Thanks to technology and a pool of cheaper, on-demand workers available for specific projects as they arise, employers haven’t felt the need to raise wages for gig workers or their staff alike. According to the Bank of Canada, roughly 1 in 3 people do informal, or gig, work—which mirrors the trend in the U.S., where an estimated 36 percent of the population participates in informal work. The central bank’s survey suggests that gig workers tend to make less than their full-time, salaried counterparts over an equivalent time period.

In a speech in January, the Canadian central bank’s senior deputy governor Carolyn Wilkins outlined the changing relationship between employers and workers. “Employers are making greater use of employment agencies and short-term contractors to replace salaried employees… The gig economy has also created a new set of jobs in Canada and elsewhere that reduces the bargaining power of workers as well.”

Based on estimates, all the gig work across Canada is the equivalent of 700,000 full-time, salaried jobs, or 3.5 percent of the total labour force. That’s a lot of “formal” positions that aren’t being filled and according to the Bank of Canada, that’s contributing to lower wages across the board.

Raises are harder to come by

There was a major change in how raises are handed out, starting in the mid 1990s. It’s a phenomenon that economist Linda Nazareth has written about, based on findings by the Bank of England, which suggests that the best way to get a pay increase is to switch jobs rather than stay put—which wasn’t always the case.

“The old model is that when companies saw people changing jobs, they’d say ‘oh, we better give raises to the people who are here because we don’t want to lose more people.’ That’s kind of gone,” she said. “It used to be that you stayed at your job for a long time and you got your raise but now it’s harder to do that. And it’s harder to keep the job for a long time. If you want a raise now, you have to be more aggressive.”

Nazareth is the author of Work Is Not a Place: Our Lives and Our Organizations in the Post-Jobs Economy and she says there’s a gap in social policy to reflect the lack of benefits and security for gig workers.

“You can only get parental leave if you’re an employee and that doesn’t sync with the reality that we have. If you’re an independent yoga teacher, and you have a child, you get nothing covered, even though you’re paying into various things. That doesn’t seem right to me; that’s something that needs to be fixed,” she said.

When it comes to retirement savings, which used to be built into full-time salaried jobs, gig workers are out of luck. Kurth says he just started putting some money aside for retirement this year. “Before that, I hadn’t saved a cent. I consider myself a millennial and I think that we’re screwed when it comes to things like retirement. I know very few people who are saving towards the future.”

For now, Nazareth says millennials can play the waiting game—and hang on in the realm of informal work until older employees leave the workforce. “Maybe when there are retirements, some of them get the permanent job. It might be that the economy picks up and their bargaining power picks up a little bit. Or it might be the opposite, that technology spirals and they, like everyone else, has to deal with whatever they can get.”

The truth about gig work

The tricky thing is that the term “gig worker” and the informal economy aren’t exactly defined. According to Nazareth, it’s an overly broad term and there has to be a better way to group them into categories that make it clear who is most vulnerable. After all, a tech worker going from one lucrative contract to another isn’t in the same situation as someone who is precariously employed.

Kurth and his four-job hustle, is obviously a gig worker. And even though he acknowledges the pitfalls, he says he wouldn’t have it any other way because he values the freedom and flexibility that gig work provides.

Although many share Kurth’s viewpoint, the Bank of Canada’s data shows that more than half (57 percent) of current gig workers said they would trade their current side hustles for a formal job, for no additional pay. The number of young workers who said they would swap was even higher, at 90 percent. This shows that although millennials and Gen Z are trying to make the best of their situation, the vast majority aren’t cobbling together side hustles by choice—they would swap freedom and flexibility for stability and job security in a heartbeat.

Follow Anne Gaviola on Twitter .

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The Gig Economy Blurs the Line Between Work and Fun for Freelancers

When coworking spaces offer night-time social events and other freelancers invite you to “laptop pedicures,” it’s hard to know where the work ends and the socializing begins.

by Melissa Kravitz
Dec 20 2018, 3:19pm

Illustration by George Wylesol

It's early afternoon on a Tuesday and I have three unread texts from friends I’ve met through my work as a writer. You see, when you’re a freelancer, the lines between networking and socializing are in no way distinct. "Hey, wanna cowork?" a message from a colleague-turned-friend reads. Another text invites me to a beer hall to meet with a friend and her friend for a working afternoon, while yet another suggests getting a “laptop pedicure” meaning we take advantage of a nail shop’s wifi while getting our toes painted.

One of the biggest perks of the growing gig economy is flexibility, the ability to work anytime from anywhere, whether for oneself or a larger corporation. That can be freeing, but also relentless. As opposed to an office job with set hours, location independent work can be completed beyond the typical business hours wherever you’re working. As a result, a day spent semi-socializing with laptops and conversations stilted by email pings is more likely to extend into a night of working before a deadline. That doesn’t just make your workday longer, it limits the types of socializing freelancers like me can do. When there is no outside of work, or off-hours, everything can quickly become work-related.

This makes me wonder, are the social interactions we have while coworking—i.e. working alongside peers on independent projects—meaningful or just weak substitutes for actual meaningful interpersonal connection? After talking to mental health and work culture experts about this, I came away thinking that getting better at compartmentalizing and planning are the keys to finding real work-life balance as a coworker in the gig economy.

Coworking spaces make the freelance life less lonely ....

Working alone has its downfalls. “Humans are inherently social creatures. Isolation and loneliness are as predictive of poor health outcomes as smoking,” says Lara Fielding, a clinical psychologist and author of the upcoming book Mastering Adulthood: Go Beyond Adulting to Become an Emotional Grown-Up. “Inversely, when we experience stress, a healthy and healing instinct is to tend to befriend [others]u.”

So the boom in membership-based coworking spaces like WeWork, The Wing (in New York), and SoHo House (in London and Los Angeles)—which start at around $50 a day for a workspace—makes sense for freelancers who might otherwise spend the entire day holed up alone at home. But the spaces often blur the line between socializing and working by offering daytime workspaces and nighttime social events, often incorporating the same members, who may network over similar skills and interests over coffee in the morning and attend a wine mixer or learn to illustrate fruits with by night. The more recent trend of converting actual restaurants into coworking spaces during off-hours blurs the line between work and leisure even further.

“You work when you can, you socialize when you can, those boundaries get blurred. Millennials, who sometimes feel socially isolated from their peers, will have to learn how to manage that life,” says Amy Quarton, professor of Organizational Leadership at Maryville University. Joining a coworking space or community (like a coffee shop), can help with this social isolation and prevent solo workers from getting distracted at home.

From a networking and success perspective, the low pressure, social aspect of sharing a space can help self-employed professionals. “Unlike a traditional workplace, where everyone has their particular strengths and roles, a coworking space opens you up to individuals doing completely different work in different types of companies,” says Lauren McGoodwin, CEO and founder of Career Contessa. “The relationships build throughout time and create great opportunities for cross-pollination.”

... But that sense of connectedness comes at a psychological price

But can spending all your time in the place you work, even if you’re not working, can be socially damaging? “Socializing solely with colleagues may also have its drawbacks. Humans have a tendency to gather and stick close to those similar to themselves,” Fielding says. “This can contribute to groupthink or the tendency for a close group to avoid confrontation or allowance of creative thinking. When our social lives are exclusively in one group, it's easy to lose perspective and fall into rigid habit patterns.”

Are you talking about invoicing and strategizing and sharing contacts while socializing with coworking pals or are you opening up about your family and dreams and favorite dog breeds? Quarton recommends making a point of putting away your work and taking a break for a meal or a drink, temporarily powering off your phone and “designating time for relaxation.” As your own boss, you’re also responsible for your own well-being, and that means taking intentional breaks is an “essential practice,” in Quarton’s terms.

As Fielding points out, socializing with peers and superiors from work is not a new concept—dinner with the boss and office holiday parties are as old as corporate culture itself, but with tech and social media, the lines blur. With so many opportunities to “socialize” i.e. connect via social media with friends who may not be as easily accessible as people with whom you can get work done, it’s important to prioritize seeing friends who are not at all work related.

“Today, we have not really spent as much time as we used to [maintaining our outside relationships],” Fielding says. “At the end of a long workday or week, there is a huge pull to just run home and binge our favorite show and space out on our phones. Making the effort to get ourselves across town is too daunting. There are more barriers to reaching outside our social work bubble.”

How freelancers who cowork can carve out real downtime—minus the laptop

But escaping that bubble is essential for optimum mental health. Fielding recommends planning ahead (even by several weeks or months, just get those plans on the calendar!), making commitments to catching up with old friends and finding ways to make new friends outside your circle of coworkers or colleagues.

“It's tempting to wait to 'see how you feel' and 'play it by ear', but we know from [many] studies that making strong and public commitments, long in advance, leads to more likelihood of keeping them,” Fielding says. “If you really are only friends with people in your industry, arrange to make plans related to other circles. If you're in finance, schedule something in the arts. If your in entertainment, go to a lecture or cooking class. The key to avoiding the groupthink is to keep challenging yourself to reach outside your comfort zone. Be willing to be vulnerable and uncomfortable. You'll grow better for it!”

Follow Melissa Kravitz on Twitter.

This article originally appeared on Free US.

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WeWork Is Imploding. More Co-Working Spaces Could Be Next

An expert says former CEO Adam Neumann’s vision for WeWork could not be executed because it was based on an old-fashioned, cut-throat industry.

by Anne Gaviola
Oct 3 2019, 8:26pm

Photo via Getty Images by Joe Amon

The story of WeWork is a cautionary tale of epic proportions. It’s a fiasco of corporate failures, a CEO doing whatever he wanted despite obvious conflicts of interest, and cashing out before his co-working empire came crashing down.

WeWork’s former founding CEO Adam Neumann, described by those in the industry as “messianic” with an “enormous ego,” was everywhere. In 2018, WeWork was reportedly the biggest office tenant in Manhattan, overtaking JP Morgan, the investment bank. During peak WeWork hype, it was valued at US$47 billion. Then documents filed with U.S. regulators pointed to the unsettling concentration of CEO power, and, in less than two months, the company imploded.

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Photo via Getty Images by Michael Kovac

According to Ian Lee, associate professor at Carleton University’s Sprott School of Business, “it’s not unusual for entrepreneurs and visionaries to have a big ego, but it’s got to be backed up by a good business model that is ultimately going to create value and make money. WeWork didn’t have that.”

Does this mean that co-working is a bust? Can WeWork-type companies actually make money? Just because Neumann was running a wild show, it doesn’t mean that the whole industry is a sham. In fact, WeWork’s rivals have been building legitimate businesses based on the growing co-working trend, fueled by demand from young digital nomads. But a business expert says this type of company, which leases office space, isn’t all that new, or revolutionary, and competition is fierce. So it’s possible to make money, especially for established players, but it isn’t the cash cow or industry of the future that Neumann made it out to be.

WeWork’s downfall

Even though WeWork is, by most definitions a real estate play, with buildings in more than 120 cities in 35 countries, Neumann pitched it as a new kind of tech firm.

In the S-1 filing, which is the paperwork it needed in order to go public—back when that was the plan—the word “technology” was used 110 times. But just because it called itself tech, doesn’t mean it actually was a tech play. That didn’t stop the notoriously unprofitable company from being valued like a tech company, thanks to its biggest investor, Japanese holding company SoftBank.

For example, Uber and Lyft are fast-growing tech firms which have prioritized growth over profit for years. Both have multi-billion-dollar valuations. Both promise to transform the transportation industry. Analysts who have looked at their numbers have even suggested these companies might never turn a profit. But that doesn’t seem to matter, as long as deep-pocketed investors believe they might someday.

WeWork reported a $1.7 billion loss in 2018 and a loss of $1.4 billion in the first half of this year, and it still pulled off that juicy $47 billion valuation.

Neumann fostered a culture of excess at WeWork, which he referred to as a “community” rather than a “company.” Vanity Fair detailed a 2018 getaway to the English countryside where 8,000 employees took part in an annual event described as “a sort of corporate retreat-meets-Coachella.” Deepak Chopra gave a speech and Lorde was the headliner at the vegetarian “summer camp.”

WeWork had about $2.5 billion in cash in June. In August, the company’s paperwork for its planned Initial Public Offering (IPO)—which would list it on an American stock exchange—revealed that even though it was increasing revenue by more than 100 percent every year, it was burning through cash.

Fast forward to today, and the company is on track to run out of money as early as mid-2020, according to Sanford Bernstein business analysts. This from a company that had raised more than $12 billion since it was founded nine years ago.

Revelations of Neumann using the company as a kind of personal piggy bank suggest a “pathological lack of internal control,” according to John Coffee, director, Center on Corporate Governance at Columbia University Law School. He’s an expert on white collar crime and executives behaving badly.

“The basic pattern was Mr. Neumann regularly either bought or leased buildings and turned around and leased them for a profit to WeWork. Sometimes he denied he was getting a profit but the fact that he was structuring himself as a principal dealing with his own company is a nightmare to anyone concerned with good governance and avoiding conflicts of interest,” he said.

On September 24, Neumann stepped down as CEO, (but not before cashing out $700 million from the company). WeWork announced 5,000 layoffs which are widely believed to include Neumann’s friends and relatives. On Monday, after delaying IPO plans, WeWork announced it wasn’t going to go public after all—IPO plans were shelved indefinitely.

The rise of co-working

The WeWork drama aside, co-working, or so-called “flexible workspaces” are increasingly a thing in the U.S. It’s home to the most flex workspace in the world—80 million square feet of it, which is a lot of real estate. By the end of this year, 696 new co-working spaces are expected to be added in the U.S., and 1,688 globally.

The amount of flexible work space in Canada is up more than 300 percent in the last five years, especially in Toronto, Vancouver and Montreal, according to commercial real estate firm CBRE. In a report released this week, CBRE vice chairman Paul Morassutti said “We haven’t seen a new type of office tenant emerge with such speed and dominance since the dot-com boom.

Unlike the dot-com bubble, which eventually burst, Morassutti said demand for flexible work spaces will continue although it will likely slow in Canada in the wake of WeWork’s problems.

Around the world, the median age of people using these shared spaces is rising—it was 33 in 2012 and 35 in 2017. The majority are between the ages of 30 and 39.

But as the trend grows, so does the number of companies interested in this commercial real estate.

Lee likens this to the restaurant industry, where failure rates are 60 percent within the first three years. This puts established players at an advantage. “I don’t see the barriers to entry there to keep out other competitors, and buyers have tons of power and tons of choices and there are so many other restaurants trying to cut your throat. And I don’t mean franchises like McDonalds, I mean family-owned restaurants—which have one of the highest failure rates,” he said.

WeWork’s dramatic downfall reminds Lee of the dot-com bubble 20 years ago, where suave CEOs peddled dreams of the future. “You invoke some fancy magical terms from the tech sector but they were never a tech company—just a plain old-fashioned real estate play,” he said. “It’s not a sustainable model. They were buying their growth, they weren’t earning their growth. I’m very skeptical of this space.”

Follow Anne Gaviola on Twitter .