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Online to Offline Car Wash Businesses Suffer in China

Photo from techinasia.com.

Photo from techinasia.com.

The online to offline car wash business in China has suffered throughout 2015. The website TechAsia.com published a chart this week of nine O2O car washes that opened either in 2013 or 2014. Of the nine, only seven are still up and running.

O2O businesses allow customers to book a car wash online with a company that sends employees to your location for a wash. Experts say competition between the various O2O businesses and other types of car wash businesses drove some to close less than one or two years after opening. The article also sites low confidence on the part of investors also harmed the market.

That might seem to bode poorly for Guagua Xiche, which is essentially the only major survivor at this point, but in fact the opposite is true. Each of the startups that shut down had managed to accumulate some business, and since they have shut down or pivoted many of those customers have switched to Guagua.

As each O2O closed, customers said they switched to a new O2O company, namely Guagua Xiche, which is still prospering. That company says they’re getting tens of thousands of online orders a day. Still, TechAsia.com posed the question as to whether the business can be sustainable long term.

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