Private equity has decided that car washes are the next gold rush.

Recurring demand. Predictable cash flow. Memberships that feel like SaaS. And with tunnel washes, a low-labor, high-throughput model that looks engineered for scale.

But most investors are still underwriting these deals like it’s 1998:
“Find the best corner lot, count the cars, and wait for the money.”

That’s not how this game is won anymore.

The economics of today’s car wash platforms are being built on three levers:

1. Data-Driven Site Selection
Traffic counts and corner visibility aren’t enough. The strongest operators are modeling household density, discretionary income, competitor footprint, and even weather patterns. A great location can look like a dud if three competitors are nearby with $20 unlimited plans.

2. Membership-First Economics
The tunnel car wash isn’t about the $12 drive-up customer, it’s about the subscription base. Best-in-class operators see 70% or more of revenue coming from memberships. That flips the model: retention, churn, and upsell data matter far more than daily volume. A mediocre site with strong membership economics is worth more than a “prime” location with weak retention.

3. Tech-Enabled Operations
This is no longer a “hose and soap” business. License plate recognition, dynamic pricing, centralized CRM, and AI-driven labor scheduling all reduce headcount and increase throughput. The difference between 2,000 members at $25 and 2,000 members at $35 isn’t luck, it’s execution.

As an investment, you’re not buying dirt, you’re buying data. And if your roll-up thesis doesn’t reflect that, you’re building a platform that will be wiped out by competitors who understand the membership math.

The moat isn’t the corner lot. It’s the data science behind the business model.