Inc & Co Group announces acquisition of Laundrapp
Inc & Co Group has announced today its acquisition of the operations of Laundrapp, the UK’s largest on-demand laundry service.
Laundrapp provides a laundry and dry cleaning service via its app – they collect, clean and deliver your items back to your door at a time that suits.
Founded in 2015, Laundrapp will join the Inc & Co Group, which offers high-level strategic support to high growth digital companies across the UK.
The London operating business currently services all major cities and with its growing, loyal partner base they are looking to enhance existing partnerships nationwide and further afield.
Disrupting the laundry and dry cleaning industry has been the key to Laundrapp’s success to date. Laundrapp acquired Zipjet in 2019, increasing its marketing share considerably.
Jack Mason, Group CEO of Inc & Co added: “I was inspired by the work of the Laundrapp team, and the great product they have built. This business, with its ambitious growth plans, is a great fit within our group. It’s very much a part of our strategy to have forward-thinking technology, and digital products and services within the group. I’m looking forward to supporting the Laundrapp team on their mission.”
Laundrapp is aiming to further capitalise on the exponential growth of the increasingly popular on-demand dry cleaning market with the launch of a new ambitious growth strategy. This includes a refreshed digital offering of its website and app and also a high-level customer acquisition and retention strategy.
Dominik Wellmann, CEO of Laundrapp, said: “I’m looking forward to working with Jack and his experienced team. It’s business as usual for our customers, the Laundrapp team, partners and suppliers, and I’m excited to be receiving additional support from the group with our ambitious growth strategy.”
Matt Connelly, founder and CEO, ihateironing
It’s positive to see that someone has acquired the assets of troubled start-up Laundrapp after the company went into administration. The ambition to be a disruptor is what drives us to make industries better, however having an understanding of the market you are disrupting is the key to long-term success.
Three things have cost Laundrapp their long-term success. Firstly their business model which relied on out-of-town factories didn’t provide the level of care needed for people’s clothes. This mass processing approach can’t provide the detail and care that the best independent dry cleaners can produce.
Secondly the company focused too heavily on attracting new customers, as opposed to retention of existing ones.
Finally, Laundrapp’s founding team were really employees rather than founders, with no more than 2-3% share holding so their focus was on profit. Whilst healthy financials are important, that can’t be the only thing that drives you. Start-ups need to be fuelled and driven by passion and love to make their business a success.
It’s sad to see Laundrapp in trouble, but it should serve as a reminder to start-ups not to cherish funding rounds and staff numbers over a quality service and happy customers.