Boxable is an American manufacturer of compact, modular homes that was founded in 2017 by Paolo Tiramani, son Galiano Tiramani, and Kyle Denman.
Boxabl’s mission is to solve the worldwide housing crisis with a construction technique that is cheaper, better, and faster than traditional methods. According to Paolo Tiramani, the company will achieve this by making home construction compatible with assembly line production: “We see a huge opportunity to transition the world from building by hand, to using the same factory principles that we use for all our other modern products.”
How does Boxabl work?
Boxabl’s core product is the Casita, a pre-fabricated accessory dwelling unit (ADU) that has walls, a floor, and a roof that fold into each other to form a box. Each box can be unpacked and assembled in less than 60 minutes and can easily be transported with a modern pickup truck.
Depending on the complexity of each site, the Casita sells for between $5,000 and $50,000. This does not include the price of the land or set-up costs that may be incurred for the foundation, utility connections, permits, landscaping, and so forth.
The Casita is comprised of steel, concrete, and EPS foam and is more resistant to snow, fire, pest invasion, and hurricane-force winds. Boxabl does not use traditional building materials such as sheetrock or common lumber.
In the factory, each unit progresses through six different workstations where tradespeople such as plumbers and electricians perform specialized tasks. The company claims its system can assemble a home in as little as 90 minutes.
Flexibility
Each Casita is a 20 x 20-foot studio apartment that comes with a bedroom, bathroom, kitchen, and living area. But it is worth noting that additional Boxabl modules can be added to the Casita to create a larger home with a more traditional floorplan. There is even the possibility of adding a second story.
It is feasible that developers could also use Boxabl modules to construct an entire apartment complex. Boxabl’s linkable, pop-up rooms could also serve as auxiliary hospitals, commercial offices, hotels, and disaster shelters.
What is Boxabl’s business model?
Boxabl’s business model is based on three central components:
Mass production and standardization – Boxabl constructs and sells modular homes at scale. The company currently operates two factories in the United States but plans to build more automated facilities to increase productivity. The end product is of consistent quality and offers endless configuration options.
Simplification – Boxabl takes inspiration from the Danish toy company Lego and the way it created a standardized system to build its plastic toys. Applied to house construction, the Boxabl system is simple, reliable, and embraces new and pragmatic materials.
Transportation solutions – existing mobile homes often require police escorts or are subject to other restrictions that make them cumbersome and expensive to transport. Boxabl’s patented folding system enables units to be towed with a standard pickup truck or, on a larger truck, the company can ship 2 to 3 times more units per load. This results in cost savings for Boxabl and its customers.
Future plans
Tiramani wants a factory in every country and claims that Boxabl’s products are suited to any climate. To achieve this, Boxabl plans to adopt a factory franchisebusiness model which would enable construction of the units to occur worldwide.
Boxable is an American manufacturer of compact, modular homes that was founded in 2017 by Paolo Tiramani, son Galiano Tiramani, and Kyle Denman. Boxabl’s mission is to solve the worldwide housing crisis with a construction technique that is cheaper, better, and faster than traditional methods.
Boxabl’s core product is the Casita, a pre-fabricated accessory dwelling unit (ADU) that has walls, a floor, and a roof that fold into each other to form a box. Each box can be unpacked and assembled in less than 60 minutes.
Boxabl’s business model is based on three central components: mass production and standardization, simplification, and transportation solutions. In the future, the company has plans to expand worldwide with a factory franchise system.
An accessory dwelling unit (ADU) is a term used to describe a secondary house or apartment located on the same plot of land as a larger, primary place of residence. This has become an industry for its own sake, with the potential to become the next trillion-dollar industry.
Samara is a manufacturer of prefab accessory dwelling units (ADUs) that can be installed and operational in a matter of hours. It started as an R&D unit of Airbnb in 2016. And it eventually was spun off and run by Airbnb co-founder Joe Gebbia, who now runs it full-time.
Airbnb arbitrage is a business model where the renter of a house or apartment sub-lets the property to Airbnb users. This is a model where the Airbnb arbitrageur can transform a long-term rental, with the main property owner, into a short-term rental, with higher rates and margins.
Airbnb is a platform business model making money by charging guests a service fee between 5% and 15% of the reservation, while the commission from hosts is generally 3%. For instance, on a $100 booking per night set by a host, Airbnb might make as much as $15, split between host and guest fees.
In Q3 2022, Airbnb recorded its most profitable quarter ever. With revenues of $2.89 billion in Q3 2022, Airbnb posted a record of $1.21 in net income. The first nine months of 2022 posted revenues of $6.5 billion and a net income of $1.64 billion. Thus Airbnb will be profitable in 2022.
Airbnb’s take rates, also called fees, that the platform charges to hosts range between 15-20%. In Q3 2022, Airbnb’s take rate was around 18.5%, compared to 18.8% in 2021 on almost a hundred million nights booked over the platform. Airbnb’s gross booking value per night was $156.44 in Q3 2022, and the total gross booking value was $15.6 billion.
In 2021, Airbnb generated enabled $46.9 Billion in Gross Booking Value, and it generated $6 Billion in service fee revenues. On 2021, there were $300.6 Million Nights and Experiences Booked, ad an average service fee of 12.78%, at an Average Value per Booking, $155.94.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
