Washio – the on-demand laundry service that launched in 2013 to much fanfare – has announced it will shutter its services, effective immediately.
In a letter posted to the company’s website, Washio’s founders announced that no new orders will go through the service, and outstanding orders will be returned promptly to customers.
According to TechCrunch.com, Washio was shopping itself to various competitors that might be interested in an acquisition, but it appears none of those conversations came to fruition.
The company had raised nearly $17 million in funding from investors like Canaan Partners and AME Venture Partners, as well as notable angel investors such as actor Ashton Kutcher and rapper Nas.
When Washio originally launched, it offered a service that would pick up clients’ laundry or drycleaning at a scheduled time, sometimes as early as 24 hours from the time of the order placement. In 2015, the company launched Washio Now, guaranteeing a pickup within an hour of ordering, with a 24-hour turnaround time on clothes.
Washio grew to service Boston, Los Angeles, Chicago, San Francisco, Oakland, New York and Washington D.C.
In recent years, the company had faced fierce competition from a number of new on-demand, app-based laundry services entering the market.
“We generated millions in revenue and hundreds of thousands of orders, but the nature of startups is being innovative and venturing into uncharted territory: sometimes you make it, sometimes you don’t,” stated Washio’s founders in an online letter to their customers. “We are proud of what we accomplished along the way: over 1 million items of clothing drycleaned and over 21,000 tons of laundry washed and folded!
“As of August 29, Washio will be shutting down its operations. No more orders will be accepted and outstanding orders will be returned promptly to customers.
“We are not alone in believing in Washio’s core business, technology and team, and hope it lives on in some shape or form in the future. But, that story has yet to be told.
“From the bottom of our hearts, we want to thank you for all of your support and belief in Washio, our vision and our love for sharing cookies and clean clothes.”
Although Washio may have been one of the most recognizable names serving the on-demand home delivery laundry market, the company’s early successes spawned similar companies, which continue to grow and cater to this segment.
“The Laundry Doctor is still bullish on the wash-dry-fold business, even with the news of Washio dropping out of the marketplace,” noted Coin Laundry Association Chairman Jeff Gardner, president of The Laundry Doctor, based in St. Paul, Minn. “Washio made the mistake of growing too quickly. As we’ve seen in the past, companies that grow too fast in this market segment lose control of their quality and eventually fail. Wash-dry-fold is a business where quality control and customer relationships are key elements.
“There are still a lot of players in this segment, and the marketplace has added several newcomers in recent years,” Gardner continued. “It’s still a strong marketplace and a growing market segment. And, clearly, everyone will benefit from the trailblazing work Washio did to increase awareness of this service. I don’t believe this is the end – it’s only the beginning.”
