On-demand Laundry Apps: Risks And Future Challenges
Ever heard about on-demand laundry apps and how they can make our lives easier. Our daily life has become easier only because of the presence of on-demand mobile applications.
On demand apps have facilitated the human life and growth of small businesses like laundry, salons, food outlets, restaurants etc.
On-demand laundry apps offer many benefits to their customers as well as the business owner. Laundry clothes are collected or washed by the laundry in just a few clicks.
Laundry Business & On-Demand Laundry Mobile Apps
On-demand laundry app services by hiring delivery professionals, local washermen, and laundry and drying workers.
According to a report by Euromonitor International, the Indian laundry industry is worth Rs 200,000 crore.
Only 5% of the laundry market is settled and the rest is still unclear. Online laundry customers are expected to increase by 20% from approximately 12 million customers.
Laundry sector comes in Top 10 Business Ideas by Business Books as this sector requires nominal capital, no-entry barrier, market is huge etc. If you are also want to enter in the laundry market with your brand then contact a laundry app development company for building a wonderful app.
Challenges Which Are Faced By The on-demand Laundry Apps
Less skilled labour
The laundry industry mainly depends on skilled laundry workers. Yes, it involves software and machinery but manual work cannot be eliminated.
Laundry sector is trying to fill the vacancies by paying good money to the labourers as most of the laundry work is done by them.
It is true that if the laundry workers are not paid well, they will lose their interest in working.
In this, they will earn their money by opening their own small shops, which will turn into a severe shortage of labourers.
Sector with lower margin business
Most of the laundry customers want their laundry delivered at their doorstep without paying an extra penny.
Therefore, the main challenge is to find consumers who maintain a certain level of rates.
The margin in this laundry business is not very high and these small increments are needed for the survival of the laundry business.
There are many steps involved in the laundry process. Also the expectations of the consumers are high but there is a small risk involved in this process as the whole process is not fully automated.
Hence it is always a challenge for the on demand laundry service provider to meet the customer’s expectations.
Establishment in the market
The laundry market is dominated by pre-existing companies like Uber, Rinse, Cleanly, etc.
Attracting skilled workers towards your on-demand laundry business requires some attractive policies.
This will be the biggest challenge for your business. Plus you need to attract customers to choose your laundry services.
High risk & reward ratio
Let’s say you get an order for 50 shirts and you charge 1$ for each, making a total charge of $50.
Now imagine, one of them got damaged and the shirt costs 50$.
In that case, the customer will not pay a single penny to the laundry service provider which can surely make you lose all the profit.
The laundry market offers a variety of options for customers. Customers can choose from online as well as offline options for their laundry.
But it is a challenge to achieve customer and customer loyalty with all these options which are directly related to customer retention.
The various issues related to logistics are:-
- Sometimes the customer may not be available at the pickup location, leading to delay in delivery.
- Due to certain reasons, it may happen that the customer may not receive the delivery at the expected time slot.
- Fake laundry orders are another major challenge.
- Problems are faced in locating the address of the customers
We know it is hard to satisfy every consumer. For example, out of 50 laundry customers, there will certainly be at least one dissatisfied consumer. You can attract your consumers with some attractive discounts and offers.
The actual operations are done on the backend by skilled laundry workers who are hard to attract.
A balance between rising customer rates and skilled labour is required to run the laundry business, otherwise it will impact on-demand laundry services in a negative way.
The Last Words
Thus, the laundry market is promising but there are many challenges which need to be overcome in order to establish your laundry business in the market but surely the market and its opportunities can get bigger with some proper business techniques. and huge profits can be made from it.