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Because demand might be elastic and you can keep costs closer to utilization and outsource stuff you don't want to do like manage an office

Same reason companies pay Google and Amazon for cloud servers

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But plenty of "non-WeWork" office space offerings have already been like that for decades. They'll provide janitors, receptionists, etc unless you opt for spaces without it to run your own.

But plenty of "non-WeWork" office space offerings have already been like that for decades.

Cynically, those companies have the downside of needing to make a profit. WeWork strikes me as the sort of company that would happily take a massive loss, just to get to brag that Stripe and Facebook use their services.

That's 100% been the case - I am familiar with the industry and they have been more than willing to not make any margin in order to get the clients they want (big names, or poach from the competition)

That strategy works great, so long as you have unlimited funding.

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