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The Car Wash Industry: Disruptive or Constructive?

By Akshat Bansal 3rd August 2018

The car wash industry is very unorganized and there are very few companies controlling the car wash industry. There is a huge potential in on-demand car wash business. According to the United States Census Bureau, Americans spend $5.8B a year at car wash facilities. In the last decade, more than 70% of car owners started using car wash facilities instead of washing cars at their home premises. The car wash industry is so big that 8 million vehicles are washed every day at car washes.

Consumer Trends and Growth Drivers

Speed and convenience are two major factors driving the growth of the car washing business. As a matter of fact, there is a vast decline in the percentage of US consumers washing their cars at home. The trend is moving from “Do-it-Yourself” to “Do-it-for-me”. Important to realize, according to professional car washing report, 35% of said that the competition is under one mile away and 24% of respondents are planning to launch their own car wash service within next one year. Consequently, the competition in the on-demand car wash industry is going to be stiffer in coming years. Without a doubt, North America, Europe, and Australia are the matured market for on-demand car wash business and the introduction of on-demand car wash app will certainly organize the industry and attract more customers.

In the United States, more than 72% of drivers use professional car wash services frequently and conveyor car wash is the most revenue generating service. On-demand car wash platform can be a good start in this industry if they solve the issues behind the consumers not washing their cars more frequently. The consumers who prefer washing their cars at home are primarily due to the high expense and time consumed at car washing stations. On-demand car wash app is the best solution to reduce the time consumed at car washing stations.

Car Wash

Reasons behind Car Wash Growth

Many reports cited various reasons behind the growth of the car wash industry in recent years. But the reason behind the growth is the change in spending power and an increasing number of vehicles on road. Increase in per capita disposable income is the most important factor behind the growth of car wash industry. According to market research from IBIS world, US car wash industry has 2.9% annual growth. The growth is huge when we consider 8 million cars are washed daily.

The lower cost of gas and low-interest rates are directly proportional to the increase in the number of new cars on roads. For car wash industry, this is a great news. Some customers are buying new cars for the first time and some are upgrading their cars. Such customers are highly motivated to keep their new cars clean and in great condition. New development in technology also changing the face of on-demand car wash service. With new technology, the number of cars can be washed in less time and produce better results. Faster service time, better and safe cleaning all adds up to enhance the customer experience.

Winning the Customer Base

On-demand car wash platform is a great savior in the industry. Car wash app and car wash website offer convenience along with faster service to the customer. The car wash sector in North America is equipped with the latest technology as compared to the European market. Starting an on-demand car wash platform has a huge potential in the North America market. 51% of the industry is tapped by automatic car washes creating revenue of $4-5 per vehicle per wash. Building the facility of car washing and enhancing the customer service are two major factor to attract more customers. Offering a high level of convenience by offering monthly and a yearly subscription model and embracing the technology such as car wash app and car wash website adds to convenience for both service provider and for the customer.

With a huge number of car wash service providers available within one mile, winning the customer base isn’t easy. Going online and letting the customer schedule the car wash appointment can be a good strategy to acquire customers. Scheduling will decrease the customer wait time to a significant level. In the current scenario in car wash industry, updating the technology can remarkably increase the customer base. Shifting the car wash from on-need to on-demand has a huge possibility to change the industry face.

To achieve maximum success for on-demand car wash platform, you need to use the best technology available. Yelo has assisted multiple online marketplace platforms to enter the market and providing best quality service and platform to car wash business to compete effectively in the competitive landscape.

Get in touch with us if you are interested in starting your own branded business in car wash industry.

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