Car Wash That Comes to You

[rph9168]

Saw this on line this morning. Sounds more like a scam than reality. I wonder where all that money he said he is raising is going to?

http://www.aol.com/video/a-car-wash...maing-grid7|main5|dl18|sec1_lnk2&pLid=153735v

 

[dogwasher]

He says the average car wash in San Fran is $20.00.....how about that..here in the Chicago area you can run your car threw a million dollar tunnel for three bucks and get free vacs and I hear some washes are giving away free Blue towels with every wash. I don't think his $29.99 we come to you plan will work around here unless he offers to fill there gas tank for free after washing the car.

 

[under pressure]

I like how the reporters talk about stealing his ideas on air,

 

[Earl Weiss]

Still pretending the elephant in the room is not there. With only a pump sprayer and 3 gallons of water how do you eliminate / reduce abrasion levels of the dirt?

 

[rph9168]

In addition to the actual washing of the vehicles and the equipment and supplies needed, logistics alone would be a nightmare in most cities. This guy is a computer geek that really doesn't understand the business. If not, still sounds like a scam to me.

 

[robert roman]

Maybe you guys aren’t getting it because I wished I had thought of it.

The value proposition is to provide “on-demand” carwash services to customers anywhere they park. In other words, the company is pursuing a niche market.

Pricing is reasonable not preferred. Promotion is via Cherry.com, an internet-based application and self-service technology company. Distribution is via contract mobile service providers.

The test market was San Francisco, California.

Seed round funding of $750,000 came from Yammer CEO David Sacks, PayPal founder Max Levchin and Square COO Keith Rabois. About the same cost of buying two distressed self-service washes.

Apparently, the results of the test market were good enough to validate the business model because Cherry secured venture capital round funding of $4.5 million from Shasta Ventures for future development. Cherry's funding to-date totals $5.25M.

This level of funding is on par with the cost of building several exterior express conveyors except there is no land, buildings or equipment to pay for. So, it sounds like VanderZanden knows the carwash business to me.

Shasta’s CEO believes Cherry app (technology) is going to wake the carwash industry up.

Cherry makes a lot more sense than trying to engineer and build a high quality carwash facility that is truly portable.

 

[MEP001]

It seems more to me that it's a guy with a good idea that doesn't have the real world experience to implement it properly.

His pricing of $29.95 is to compete with a full-service wash ($20), but his end-product will probably be that of an EE ($3).

 

[pitzerwm]

Whether it works or not, he is selling convenience, no waiting in a line, no problems, walk out and your car is done. Go to the Forum library and you will see how this was being done in Mexico City in 2000 or so. Of course, there is was a buck or two.