Do the people running this business know anything about actually washing clothes? What makes you think they could set up and operate a commercial laundry themselves and make a profit doing it? These are a couple of young Stanford grads who originally wanted to do an "in-video advertising platform".

"discounted rental space..."

Why would someone rent them commercial space at a discount?

"and hybrid or electric cars to further cut down costs..."

I don't think cars are economical for doing laundry pickups. How many 20 pound laundry bags can you fit into a car before having to go back to the laundry to drop them off? That would waste a lot of driver time, which is probably much more expensive per hour than gas.