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I started wondering how wash.io had seemingly driven out so much local business, and thought: perhaps they were undercutting the opposition - cleaning at cost o

by manarth 10y ago

I started wondering how wash.io had seemingly driven out so much local business, and thought: perhaps they were undercutting the opposition - cleaning at cost or less - in order to build market share? Their website is still showing prices: - $2.15/lb Wash+Fold (min 15lb, so $32.25 minimum) - $2.75 shirt - $6.69 t-shirt - $7.79 sweater Plus a $5.99 delivery charge. I'm not all that familiar with laundromat prices in the USA, but the few truck-stop laundromats I used were much cheaper than this (admittedly I'd have to fold my own clothes). On the face of it, they weren't competing with local laundromat services - not on price, at any rate. If they were competing for business, it was with the cash-rich, time-poor market segment. I'm skeptical that wash.io really drove that many local laundromats out of business, and if a significant number of laundromats happened to go out of business at the same time, it's worth exploring whether there were other market forces (such as increased business rents) at play.

xg15 10y ago
One of the tweets links an article that suggests it's more a sign of the general gentrification/housing crisis - with wash.io more like the cherry on top than the real cause: So why are San Francisco laundromats actually closing down? Two reasons: real estate and the tech boom. There is a shortage of housing in San Francisco, which is a problem exacerbated by the boom in startups and the influx of highly paid employees. The rich want homes, and they're willing to buy the poor out of them. https://mic.com/articles/123311/ https://mic.com/articles/123311/
- bigjimmyk3 10y ago
  If that's the case (and if GP's analysis is correct) then the post title seems misleading to me. Further, it sounds like wash.io was doing the natural thing in an environment of rising real estate prices -- move the big bulky machines somewhere else (where the real estate is cheaper) and pickup/deliver.

by manarth 10y ago

xg15 10y ago

One of the tweets links an article that suggests it's more a sign of the general gentrification/housing crisis - with wash.io more like the cherry on top than the real cause: So why are San Francisco laundromats actually closing down? Two reasons: real estate and the tech boom. There is a shortage of housing in San Francisco, which is a problem exacerbated by the boom in startups and the influx of highly paid employees. The rich want homes, and they're willing to buy the poor out of them. https://mic.com/articles/123311/ https://mic.com/articles/123311/

bigjimmyk3 10y ago
If that's the case (and if GP's analysis is correct) then the post title seems misleading to me. Further, it sounds like wash.io was doing the natural thing in an environment of rising real estate prices -- move the big bulky machines somewhere else (where the real estate is cheaper) and pickup/deliver.