• The “business in a box” model allows for significant de-risking of product-market fit (which is very hard to achieve!)
• A “business in a box” removes the “idea risk” from a venture, leaving the entrepreneur with geographic and operating risk.
• The parent company benefits from faster and more capital-efficient geographic growth (no need for market launch or operations teams in each city), lower real estate and inventory risk, and better local execution.
• The “business in a box” model has taken many shapes over time, but has a long history — franchises (established in the 1800s), multi-level or “network” marketing (1940s), and more recently gig economy platforms.
• New group of “Internet franchises” as combining the scale of marketplaces with the ownership and incentive structure of franchises.
• 2 models that would mimic the characteristics of physical brand or franchise are
  • Abstracts away operational and logistical complexities
  • Taps high-quality but under-utilized supply to fill excess demand - upstarts will fill the supply shortage.
  • Parent company benefits from decentralized scale.
  • Operator benefits from the company’s scale.
  • Provides opportunities for economic mobility.
  • Brand provides real benefits towards consumer acquisition.