On-Demand or In-Demand for the Dry Cleaning Industry?

When we started My Locker Laundry in 2017, the "on-demand" economy was heating up in Singapore.

People were becoming more familiar with the concept of on-demand services, and the success stories of companies like Uber and Grab (now merged into one company) had inspired many VCs to search for the next big opportunity in the space.

Across industries, companies were launching on-demand services for a wide variety of needs. Fast forward to today, and while a few companies have found success with the on-demand model, many have struggled or failed. In recent months, we've seen well-funded startups, with strong teams and big ambitions, go through layoffs or shut down entirely. This begs the question: why?

The answer is clear: On-demand is not always the optimal solution for most customer needs.

The Problem with On-Demand in the Laundry Industry

Let's take a closer look at the dry cleaning and laundry industry. One of the most well-known on-demand laundry startups, Washio, launched in 2013 with great fanfare. Despite raising over $10 million in funding, it shut down after just three years. In 2015, Washio introduced an on-demand model that promised laundry pickup in as little as an hour. However, the business ultimately couldn't sustain itself.

Closer to home, we witnessed the abrupt closure of My Laundry Box in 2016, with the entire team, including the CEO, disappearing. The sudden collapse shocked many in the industry.

Similarly, Honestbee, a popular on-demand grocery delivery service, faced a similar fate. Once valued at over $200 million, it became another casualty of the on-demand boom in Singapore. Despite attracting significant investment, Honestbee struggled to maintain a viable business model and ultimately shut down its operations in 2020. The company failed to meet its customers' expectations, leading to its downfall. 

The central issue for these businesses was simple: they ignored the real needs and pain points of their customers.

A Needs-Based Approach at My Locker Laundry

At My Locker Laundry, we took a different approach from the very beginning. Instead of focusing on "on-demand" speed, we focused on being needs-based and solution-driven. Our goal was to eliminate two major pain points for our customers: inconvenient locations and inconvenient hours.

Unlike traditional dry cleaning services, which are bound by set operating hours, My Locker Laundry offers customers the convenience of sending their laundry 24/7 through our easy-to-use mobile app. This allows customers to drop off and collect their clothes at their convenience, without having to find a nearby shop or wait for a delivery. Furthermore, customers can make secure, cashless payments directly through the app, anytime and anywhere.

Why On-Demand Doesn't Make Sense for Laundry

Uber solved a fundamental problem: when you need a taxi, you need it now. 

Offering an on-demand service for taxis makes perfect sense. However, this urgency doesn't apply to the laundry business. Most customers don't need their clothes cleaned immediately. In fact, offering an on-demand laundry service often leads to higher operational costs and compromises the quality of service.

At My Locker Laundry, we understand that customers value consistency and quality over speed.

Customers need a reliable and recurring service where their clothes are cleaned and treated professionally. Our model focuses on in-demand service, ensuring high-quality, thorough cleaning and excellent customer service, rather than rushing through orders in a bid to meet the "on-demand" expectation.

The Pitfalls of the On-Demand Model

In the laundry industry, quality is paramount. Speed may seem appealing, but on-demand services typically lead to a drop in the quality of cleaning. Pushing items through quickly often results in less thorough care and a subpar customer experience.

At My Locker Laundry, we don't prioritize speed at the expense of quality. Our customers trust us to provide the best care for their clothing, and we deliver on that promise every time.

How My Locker Laundry Stands Apart

1. Convenience at Any Hour

   • Traditional: Customers have to work around the operating hours of the service provider.
   • Locker Laundry: Customers can send their clothes 24/7 at their convenience, without the need to worry about store hours.

2. Loyalty Rewards

   • Traditional: Service providers don't typically capture customer data, so there's no reward for loyalty.
   • Locker Laundry: We capture customer data in our electronic system, rewarding customers for their loyalty with credits that never expire. Customers also earn financial rewards every time they send in their clothes.

3. Efficient Operations

   • Traditional: Service providers have high overhead costs, including rental and staffing, which are passed on to the customers.
   • Locker Laundry: We eliminate high overheads by utilizing automated systems and strategically placed lockers, passing the savings directly on to our customers.

Serving Customers' Real Needs

There are still many startups within the "on-demand" economy, but the key to sustainable success is to truly understand and serve your customers' needs.

Laundry services are something everyone needs, and the market is huge. At My Locker Laundry, we're making it more accessible and affordable for everyone. This approach has led to more customers and higher usage per customer.

The laundry industry remains highly fragmented, with fewer than 300 establishments in Singapore. More than 70% of these are small, independent shops with varying levels of quality, pricing, and service. By integrating technology and partnering with condominium managements, we offer a reliable, convenient, and cost-effective solution for busy Singaporeans to get their laundry done in just two clicks on their mobile phones.

Conclusion

The key takeaway is this: on-demand services may work for some industries, but they are not a one-size-fits-all solution. At My Locker Laundry, we've focused on providing an in-demand service that meets our customers' real needs for convenience, quality, and consistency. This customer-centric approach has helped us build a sustainable business that continues to grow while offering value to our customers.

Want to learn more about our services? Visit us here.