Bird’s new Platform program and the rise of the “business in a box"

Business in a box refer to platforms that give entrepreneurs the opportunity and infrastructure to run a business without the convoluted and expensive process of building a company from scratch

• They unlock significant de-risking as the parent company has already found PMF (very hard!)

• Evolution of the franchise model → Internet franchise

• Franchising is an ancient business model — it dates back to the Middle Ages in Europe, when nobility sold the rights to operate and collect taxes on their land (brief history of franchises)

• Characteristics of a promising "business in a box" company

  • Abstracts away operational and logistical complexities

  • Taps high-quality but under-utilized supply to fill excess demand - Wonderschool has tackled the problem of child care deserts in the US

  • Parent company benefits from decentralized scale - businesses where local expertise is valuable and moving into new geographies is expensive are likely to benefit (such as bird)

  • Operator benefits from the company’s scale - For example, nationwide food franchises (e.g. Subway, Dunkin Donuts) can negotiate favorable terms with suppliers for equipment

  • Provides opportunities for economic mobility - companies that allow individuals to build larger businesses like the traditional franchise model

  • Brand provides real benefits towards consumer acquisition - consumers build loyalty and trust certain brands to deliver a consistent and safe experience

Author: Justine and Olivia Moore

Source: https://hackernoon.com/birds-new-platform-program-and-the-rise-of-the-business-in-a-box-899f7ac58abb