Risks and Future Challenges
1. Differentiation and barriers to entry
Laundry is laundry to most people. Is Cleanly's convenience and quality of service worth the 20% price increase over local shops? Also, there are at least three other startups working on the same problem. Can Cleanly's proprietary software and low costs set them apart from the competition?
2. Demand outside wealthy cities
New York and San Francisco are the most expensive cities in the US. Often proving grounds for startups like Cleanly, it's difficult to know whether 10-15 other urban areas will spend money on luxuries like laundry delivery.
3. Finance risk
Cleanly has raised $3M+ since launching one year ago. They're on track to profitability by 2017 but running out of capital is always a risk.
4. Macroeconomic trends
Economic downturn could pinch wallets and result in more people walking to the laundromat. Also increased minimum wage could affect Cleanly's cleaning costs.