Car Washes

Car Washes

Brief Excerpt from Industry Overview Chapter:

Companies in this industry provide cleaning, washing, and waxing services for cars, trucks, vans, and trailers. Major companies include Autobell Car Wash, Mister Car Wash, and Zips Car Wash (all based in the US), along with Mr Wash Car Wash (Germany) and Uhoda (Belgium).

COMPETITIVE LANDSCAPE

Demand is driven by new car sales and growth in consumer income. The profitability of individual firms depends on favorable location and efficient operations. There are few economies of scale. Chains have advantages in advertising and customer recognition. Small firms can compete successfully by having good locations. The industry is highly fragmented: the 50 largest US companies hold about 20% of the market.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major services are exterior wash, exterior and interior cleaning, waxing, underside cleaning, vacuuming, and premium detailing. Detailing services consist of intensive interior and exterior cleaning, as well as waxing and polishing by hand. Some facilities offer vehicle maintenance and repair and safety inspection services and sell automotive products. Washing and cleaning services for light trucks and automobiles account for about 85% of the industry revenue. Other services include automatic washing and waxing services, detailing services, and maintenance and repair services for heavy trucks and buses.