Types Of Online Laundry Apps and Their Business Model

Types Of Online Laundry Apps and Their Business Model

Types Of Online Laundry Apps and Their Business Model
Home Services Apps

Types Of Online Laundry Apps and Their Business Model

Last Updated on July 27, 2022

Online laundry service has become a popular thing due to the fast-forwarding development of the world. The service provides pick up, washing, drying, and delivery of clothes. An app to initiate and monitor all these activities is called an online laundry app.

As per Globe News Wire, the online laundry app industry is set to reach the worth of $1,28,500 million by the end of 2026. Due to many reasons like Covid-19, busy city life, corporate life, and rich lifestyle the online laundry service industry has faced a mammoth growth.

Covid-19 has caused fear among people, a fear of the deadly virus. Hence cleaning services have become a responsibility. A busy lifestyle is another reason people look for online laundry services. 

The cost-effectiveness of these service-providing apps is attracting people so they are using the apps and enjoying the service. 

The online laundry apps have a few different features of them. However, the significant difference is their business model. Online laundry apps can be divided into three categories based on their business models.

Types Of Laundry Apps Based On Business Models

Types Of Laundry Services Apps Based On Business Models

1. The On-Site Model

The on-site model is the best choice for those who have a running laundry business. In this model, clothes are picked up from the doorstep for cleaning purposes and delivered to the doorstep as well. 

Key points

  • Flexibility to the customer to schedule pick up and delivery
  • Require staffing for delivery agents
  • High chance to attract new customers
  • Online payment is an available option 
  • Clothes are cleaned as per the instructions from the customers

Example Of A Laundry App Following The On-Site Model

WashClub is a great example of an online laundry service-providing app. It is a US-based app founded by Rick Rome in 2012. The online laundry service providing app is based on the on-site model. 

Key points of WashClub

  • Eco-friendly process of dry cleaning
  • Clothes can be cleaned and delivered within 24 hours
  • Same-day service is available for clothes that are picked up for wash only
  • There are no extra or hidden charges for pick up and delivery 
  • The app provides services only in New York
  • User-friendly interface

2. The Aggregator Model

This model can be utilized by any entrepreneur or startup without even owning a laundry business. Online laundry apps based on this model are basically a platform where different laundry business owners will be participating. Only the transaction will be handled by the marketplace. 

Key points

  • Customers can pick laundries based on ratings 
  • Alongside rating a review system is available
  • Cost-efficient against the on-site model
  • Easy to operate

Example Of An Aggregator Model Laundry App

Mulberrys dry cleaning app is a nice example of an aggregator model based laundry app. It is also a US-based app founded by Daniel Miller in 2009. 

Key points

  • Mulberry laundry app helps the customers detect nearby Mulberry cleaning service location
  • The app offers its customers to schedule or even cancel the pickup
  • Tracking of delivery is also available in the Mulberrys dry cleaning app
  • The app provides costs beforehand by calculating the number of garments
  • The Mulberrys dry cleaning app has a simple yet appealing app interface

3. The In-Site Model

This is an innovative model in the online laundry app industry. It is not used by any app till now hence it can be really effective in attracting customers. 

An in-site model is where the pickup and delivery service at door step is not available. Instead, customers can fill out a form in the app regarding the number of clothes and type of clothes along with the service they want and then drop them at a nearby kiosk.

After the clothes are picked up the customer can receive a push notification. Later a notification about the date and place to pick up the clothes must be provided as well. 

Key points

  • There is no rival at the current moment using this business model
  • Customers can drop the clothes anytime they want
  • Cash on pickup or online payment can be provided
  • The laundry app can minimize the time and cost as they will be collecting a huge number of clothes from different customers at a single stop.

Related Read: Guide To Launch A Laundry Delivery App

Trends In The Online Laundry App Industry

Trends In The On Demand Laundry App Industry

  • Consumer behavior

In the last decade, online services have received a huge push to the top. As per Statista, more than 2.14 billion people have used online services in 2021. It reflects how heavily dependable people are on online service-providing apps. 

The stat shows how people also prefer quick and effective service in just a few clicks. Covid-19 is also responsible for this behavior among customers. Therefore a laundry app is also effective in current times.

  • Information collection

In order to advance and achieve growth in any business information regarding customer experience, preferences, and ideas are important. In online laundry apps, it is no different.

The app eliminates all the costs and saves time in organizing a survey and then having people answer the questions. The apps come with rating and review features and AI can detect each consumer’s preferences hence the information collection step becomes cost-efficient and non-time consuming.  

  • Deficiency of ownership model

In an online laundry app business, the ownership model is not that important, and therefore the business can expand quickly.

Having an online laundry service app can eliminate the costs of having another physical store, employees, and equipment. The app can bring other laundry businesses to its platform and start providing service in different locations.

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    Mandatory Features An Online Laundry App Needs

    Mandatory Features A Laundry Delivery Service App Needs

    • Search option: The search option in any online service-providing app is mandatory as it helps the customer manually search for any specific laundry service in any particular location. So a search option is essential in online laundry apps.
    • Filter option: The filter option helps a customer in specifying his search criteria. Specifying search criteria helps the app to provide the most relevant options as well. It helps in identifying the best service providers for any particular service like dry cleaning.
    • Pickup and delivery: Pickup and delivery as per customers’ preferences can help the app grow based on customer satisfaction. So a schedule option for pickup and delivery is crucial for an online laundry app.
    • Manage earnings: This option is vital for both the associated laundries and the admin of the app. As it helps the laundries to track their money and also the admin to deduct the service charges.

    Earning Opportunities In Online Laundry Apps

    Earning Opportunities In Laundry Delivery Applications

    • Paid Listing

    This is the most common method for online service-providing apps in generating revenue. This model of revenue generation can be found in aggregator business model-based apps. 

    The apps charge money from the listed laundries to provide them a spot at the top of the sections. As the laundry service business listed in the homepage of an app has a higher chance of gaining more profit. It is the primary source of income for online laundry apps.

    • Commission

    This is also a money-earning strategy found in the aggregator business model-based apps. The apps form an association with local laundry businesses and then provide them a wider scope of doing business and offer a few services such as pickup, delivery, and support. 

    In return for the provided services, the apps charge an amount as a commission. The apps charge this commission in every single order a laundry business has received from the app. 

    • Ads

    Ads are a valuable source of earning for online apps. An online laundry app can earn more by advertising similar and relevant items and services on its platform. 

    For example, promoting soaps, detergents, and stain removers can be an ideal way to gain money. 

    The Bottom Line

    The online platform for providing services has evolved in the last decade and it is still growing with momentum. Online laundry apps have also emerged as the latest trend in online service-providing apps.

    The reports prove with stats that the industry is set to become a huge prospect in the upcoming time. So it is a great idea to launch an online app for laundry services.

    There are three business models for online laundry apps. Every model has its own feature along with target consumers.

    The on-site model provides the already running business an extra mode to earn and reach a wider range of customers. 

    The aggregator model is for those that want to have a laundry app but does not own any laundry business. An entrepreneur teaming up with local laundries and building his own platform to provide customers laundry service is the main concept of the aggregator model.

    As per one’s preference in the business model an app can be developed with the above-mentioned features. Proper planning and customer satisfaction can help an online laundry app grow.

    Frequently Asked Questions About Online Laundry Apps (FAQs)

    Que. How much does an online laundry app earn?

    Ans. As the online laundry app is in trend and preferred by customers, it is now a money-making prospect. As per the reports of Trioangle, at the end of 2032, the revenue of online laundry services will be around $4582 million. In the US an online laundry app makes around $12,333 per month on average.

    Que. What is the worth of the online laundry app industry?

    Ans. As per the reports of Verified Market Research, in 2021 online laundry service industry is valued at $17.85 billion. The expected value in 2030 is $27.63 billion. North America is set to face growth of 34% in the online laundry app industry by 2024.

    Que. How much does it cost to build an online laundry app?

    Ans. building an app requires multiple steps and processes. In completing these steps and processes a huge amount of time can be taken. So the cost of building an online laundry app can be high. Around $50,000 to $65,000 is the total cost of building an online laundry app in the US. But the cost may vary as per the professional’s location.

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