Turns out that demolishing laundry isn’t all that easy.
Earlier this week, on-demand laundry startup Washio told its customers that it was shutting down its service. Founded in 2013, the Los Angeles-based startup provided laundry and dry cleaning services to customers in six U.S. cities. At first, customers had to schedule the pickup and drop-off ahead of time, but in 2015, Washio added the option of a pickup within 30 minutes.
But all that “innovation” didn’t prove sufficient, despite the nearly $17 million Washio raised from investors like Sherpa Capital, Canaan Partners, and actor Ashton Kutcher.
Washio is far from the first startup in the so-called “on-demand” economy to call it quits. Last year, Homejoy, a service that dispatched house cleaners with the tap of an app shut down after it couldn’t raise additional funds, was slapped with a labor lawsuit, and generally failed to create a sustainable business, as Backchannel detailed in a lengthy report. Valet parking apps Caarbon and Vatler folded last year, and “Uber for kids” startup Shuddle shut down in April.
And we’re only going to see more of them die. Why?
Because despite their fancy mobile apps and funding from technology-focused investors, these startups are in the business of providing a consumer service. They must build complex operations that involve customer interactions and delivery staff while competing in low-margin, labor-intensive businesses.
Ask anyone in the service sector and they’ll surely tell you it’s no walk in the park. Even supposedly “mature” companies like Uber, which now offers rides and food delivery, still struggle with things like customer service, managing drivers, and providing consistent service to customers.
It doesn’t matter how shiny your app is, if you lose my laundry or burrito, make me pay a small fortune, and still can’t deliver it on time, it’s game over.
This is the Startup Sunday edition of Data Sheet, Fortune’s daily tech newsletter, edited by reporter Kia Kokalitcheva. You may reach me via Twitter, email, or an entirely new platform that your startup developed. Feedback welcome.