What is Sonder's primary business model dilemma?

Sonder's primary business model dilemma revolves around navigating the balance between two distinct sectors: hotels and co-living spaces. This challenge arises from the need to decide how to allocate resources and strategic focus between these business lines, which cater to different consumer needs and market segments.

The hotel sector typically targets short-term stays and emphasizes amenities and services similar to traditional hospitality, while co-living focuses on providing longer-term, flexible living arrangements with shared facilities, appealing to individuals seeking community-oriented environments. The decision on where to invest and grow can significantly shape Sonder's competitive positioning in the market.

Exploring growth in both areas presents distinct opportunities and risks. While expanding in hotels might harness demand for short stays, the co-living market is rapidly evolving to meet the changing lifestyles of younger demographics. Thus, the dilemma lies in determining where to invest resources effectively to ensure sustainable growth and market relevance, making option B the most pertinent choice in understanding Sonder's strategic challenges.