• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

The millennial generation has split, new Fed research shows: Those over 35 are edging toward boomer-style wealth, while everyone else falls behind

2

Spain lifted the World Cup, but the IRS still gets a cut of its $50 million pay day as players, coaches and refs all face complex U.S. “jock taxes”

3

The $39 trillion U.S. national debt isn’t as high as Japan’s and Singapore’s relative to economy size—and yet it's still worse somehow

1

The millennial generation has split, new Fed research shows: Those over 35 are edging toward boomer-style wealth, while everyone else falls behind

2

Spain lifted the World Cup, but the IRS still gets a cut of its $50 million pay day as players, coaches and refs all face complex U.S. “jock taxes”

3

The $39 trillion U.S. national debt isn’t as high as Japan’s and Singapore’s relative to economy size—and yet it's still worse somehow

Prim: Anatomy of a folded startup

By
JP Mangalindan
JP Mangalindan
Down Arrow Button Icon
By
JP Mangalindan
JP Mangalindan
Down Arrow Button Icon
December 4, 2001, 7:00 PM ET
Add Fortune on Google for similar content.

Prim tried to be the Uber for people with dirty clothes.

Can technology disrupt even the most mundane chores?

That’s the question Yin Yin Wu and Xuwen Cao tackled for seven months with the YCombinator-backed startup Prim before closing for good on Jan. 10.

Prim tried to be the Uber for people with dirty clothes: It was a marketplace that enabled easy payments, pick-ups, processing and delivery. Go online, and choose a pick-up and delivery time. Throw your clothes in a bag — $25 for the first bag, $15 for each additional — hand them off to a driver recruited by the local delivery startup Rickshaw, and expect everything back washed and folded later that evening or early the following day. Like Uber, no cash changed hands — everything was deducted from a card on file. Simple, easy, and convenient.

When Prim shuttered, it was seeing 1,000 pounds of clothes from 40 clients a day — and growing. “Things were pointing in the right direction for them,” argues Garry Tan, a partner with YCombinator, the popular startup incubator that has shepherded businesses like Airbnb and Dropbox through its three-month startup bootcamp. (Prim passed through YC during summer 2013.)

MORE: Inside the world of one-click grocery delivery

But once you handed off your bag of clothes, the business went from forward-looking disruptor to familiar-seeming commodity. In Prim’s case, the weakest link in its supply chain was the washing itself. Prim would take your bundle to a laundromat in San Francisco, and utilize their wash-and-fold services. Prim negotiated a discounted rate for volume, but partnership with laundromats was merely a “verbal deal” and not in writing. Laundromats were paid on a weekly basis at the end of the week, based on that week’s volume of clothes, via check or credit card.

While laundromats were initially receptive to working with Wu and Cao, what the two didn’t count on was the partnership eventually going sour. Laundromat owners eventually saw Prim as siphoning possible incremental revenues from their own in-house delivery services, especially once Prim began offering same-day delivery. During Prim’s short lifespan, it churned through at least three laundromats.

“You’re in this awkward position where you’re competing against your own supplier,” Wu admits.

With that in mind, Wu and Cao were ultimately faced with a decision: either seek out other wash-and-fold services to use — a potentially endless process — or operate their own laundromat. The latter seemed a better solution in the long term, but involved funneling hundreds of thousands of dollars into leasing or buying a facility and staffing it. And for every new market it entered, the process of building such an infrastructure was essentially rinse and repeat. According to Wu, that would have slowed down company growth.

MORE: Sequoia Capital partner Luis Robles departs

So after two months of deliberation, they pulled the plug on Prim. Wu insists running their own laundromats still would have made their startup a profitable business in five to 10 years, with revenues of $10 million to $15 million, but it was a direction the co-founders didn’t want to go. Having studied computer science at Stanford, Wu and Cao held few skills for operating laundry facilities. And doing so would also take them away from their original goal of being a marketplace. “They didn’t want to actually have to wash the laundry — they wanted to be the connector,” explains Tan.

Far from being disappointed over Prim’s outcome, Wu says she and Cao are excited to tackle their next startup. In fact, they claim they’ve already raised an undisclosed amount of seed money from undisclosed investors and are batting around ideas involving online-to-offline. Says Wu: “Once you realize it doesn’t work, you want to do something that can be one of those unicorn companies that can have hyper-growth.”

And the startup cycle spins again …

About the Author
By JP Mangalindan
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • TikTok icon
  • YouTube icon

Latest in

U.S. President Donald Trump takes questions from the media during a bilateral meeting with President of Lebanon Joseph Aoun in the Oval Office of the White House on July 21, 2026 in Washington, DC.
EconomyTariffs
Trump’s new $950 billion tariff scheme still leaves a 40% shortfall in his plan to rebalance the $39 trillion national debt, CRFB says
By Eleanor PringleJuly 24, 2026
52 minutes ago
U.S. Rep. Ted Lieu (D-CA) during the Democratic National Convention on August 22, 2024 in Chicago, Illinois. (Photo: Justin Sullivan/Getty Images)
NewslettersFortune Tech
An ‘AI Kill Switch Act,’ engaged
By Andrew NuscaJuly 24, 2026
59 minutes ago
Photo: President Trump.
NewslettersMarkets
Trump weighs ‘massive attack’ on Iran as Tehran’s chokehold on oil gets tighter
By Jim EdwardsJuly 24, 2026
1 hour ago
Today’s top high-yield savings rates: Up to 4.50% on July 24, 2026
Personal FinanceSavings accounts
Today’s top high-yield savings rates: Up to 4.50% on July 24, 2026
By Glen Luke FlanaganJuly 24, 2026
2 hours ago
Top CD rates today, July 24, 2026: Lock in up to up to 4.45%
Personal FinanceCertificates of Deposit (CDs)
Top CD rates today, July 24, 2026: Lock in up to up to 4.45%
By Glen Luke FlanaganJuly 24, 2026
2 hours ago
Top CD rates from major banks July 24, 2026: Chase CDs, Bank of America CDs, Citibank CDs, and more
Personal FinanceCertificates of Deposit (CDs)
Top CD rates from major banks on July 24, 2026: Chase CDs, Bank of America CDs, Citibank CDs, and more
By Joseph HostetlerJuly 24, 2026
2 hours ago

Most Popular

The millennial generation has split, new Fed research shows: Those over 35 are edging toward boomer-style wealth, while everyone else falls behind
Real Estate
The millennial generation has split, new Fed research shows: Those over 35 are edging toward boomer-style wealth, while everyone else falls behind
By Nick LichtenbergJuly 22, 2026
2 days ago
Spain lifted the World Cup, but the IRS still gets a cut of its $50 million pay day as players, coaches and refs all face complex U.S. “jock taxes”
Personal Finance
Spain lifted the World Cup, but the IRS still gets a cut of its $50 million pay day as players, coaches and refs all face complex U.S. “jock taxes”
By Joshua HongJuly 23, 2026
1 day ago
The $39 trillion U.S. national debt isn’t as high as Japan’s and Singapore’s relative to economy size—and yet it's still worse somehow
Economy
The $39 trillion U.S. national debt isn’t as high as Japan’s and Singapore’s relative to economy size—and yet it's still worse somehow
By Sasha RogelbergJuly 23, 2026
21 hours ago
Current price of oil as of July 23, 2026
Personal Finance
Current price of oil as of July 23, 2026
By Joseph HostetlerJuly 23, 2026
1 day ago
Scott Bessent casually says the U.S. has more than $1 trillion in gold—and that it doesn’t matter for the dollar
Economy
Scott Bessent casually says the U.S. has more than $1 trillion in gold—and that it doesn’t matter for the dollar
By Sasha RogelbergJuly 22, 2026
2 days ago
Jensen Huang made his $172 billion fortune on AI chips. His family's $75 million gift to Vanderbilt argues art decides what technology is for
Big Tech
Jensen Huang made his $172 billion fortune on AI chips. His family's $75 million gift to Vanderbilt argues art decides what technology is for
By Sydney LakeJuly 23, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.