Why launching a sharing with a “white label” concept is better than a franchise

Sharing Business Insights

In today’s environment of information overload, it is becoming increasingly challenging for new business projects to enter the market to their consumers. High competition, low brand awareness, fluctuating demand and other problems create start-up entrepreneurs to think about solutions that can minimize possible risks and leave the most effective tools. If the concept of “franchise” as a way of effective start is known to nearly everyone, the concept of “white label” is still perceived by the conservative part of the business community as unclear terminology. In this article, we will realize what the business in this concept is and why this solution will be more effective for starting your sharing.

The concept of “franchising” as a modern business concept was born out of the Mac Donald’s brand in the mid-50s of the latest century. Since then, this model has become well-established in various types of businesses, and many entrepreneurs continue to open their businesses under someone else’s brand. They can be understood, because starting a franchise business, an entrepreneur gets a lot of advantages from the start:

  • working under a famous brand that already has a loyal audience
  • no necessity to look for suppliers and design logistics
  • minimal marketing costs
  • proven business solutions and processes
  • informational and methodical support
  • a fixed quantity of investment at the start with a relatively accurate profitability forecast

It may seem that with such an impressive package of benefits the decision to work in a franchise comes up, but the reality is different. The main argument against this model is the high ambition of the entrepreneur. If your goal is to constantly evolve, propose new products and grow your business, then this concept is not for you. There is no space for ambitious innovations and explosive development in such a system. All processes will be regulated, and every step should be agreed upon with the franchiser.

Over time, by the early 2000s, the market had developed its solution – the “white label” concept, which retained the advantages of franchising, while canceling the main limitation – the inability to set its development line. White label is a type of partnership where one company produces goods or services and another company sells them under a personal brand. In the case of sharing, it means that the available software, accumulated experience, and extensive network of our platform suppliers will be used for the needs of your business and brand. This approach allows each party to focus on their competencies and save time and money on product launches.

You can keep the main advantages of the franchise: information support, assistance in building marketing, and implementation of effective solutions, which are confirmed by the experience of our clients. At the same time, there is a problem of low brand recognition and the need to form a loyal audience, but this is quickly solved by comprehensive marketing support: from staff training to constant updates in customer strategy. Under these circumstances, you can design any development of your business, compete with any services in any location, and continuously scale up your project without losing time to search for reliable suppliers and improve software quality by relying on our partnership.


To convince you that you should not be afraid to build your brand by sharing, we will show you examples of one of our client’s startups. As you can see, sales are booming with high virility and media coverage. The appearance of a new sharing on the streets of the city is an event that, without a doubt, does not go unnoticed by residents. All you have to do is focus on retaining loyal customers and improving their user experience.