Jason Derulo, best known for his hit singles Whatcha Say, Ridin' Solo, Swalla and Trumpets, has revealed his most lucrative business venture.
Throughout his 14-year music career, the singer-songwriter has built a reputation as a businessman with 13 sources of income.
"Usually, I'd describe myself as an entertainer, but I feel like that has changed," Derulo told the BBC's podcast "Business Daily."
"I don't think I could only say entertainer anymore. It's business nowadays," he added.
In his self-help book, "Sing Your Name Out Loud: 15 Rules For Living Your Dream," Derulo speaks about his business journey and credits 15 rules for his success as an entrepreneur.
Speaking to Forbes Talks, Derulo said that his most profitable endeavour is Rocket Car Wash, valued at $2 billion.
While the singer-songwriter admitted that the car wash was a "not-so-sexy" investment, he said that he was compelled to take a chance on it "because its membership model reminded me of what Netflix and Uber did."
Joining the team in 2023, Derulo explained that Rocket Car Wash, which has locations in California, Texas, Florida, Utah, Nebraska, Iowa, and Pennsylvania, offers drivers a monthly subscription for unlimited car washes.
The business also prides itself on its sustainability as it utilises 40 per cent recycled water per car wash - saving more than 70 gallons of water per car wash compared to that of an at-home car wash.
"Rocket Car Wash is basically changing the way that people get their cars washed," Derulo said.
"It's an amazing facility. You go in, you pay a membership and you can get your car washed at any time. It's like the Spotify model and how Spotify changed the music industry. It's like Netflix and how it changed the film industry."
According to the website, the "unlimited" subscription plans can cost between $23.99 to $49.99 each month and each guarantee as many washes as a customer desires. The price range differs as consumers can add multiple services to their plan, making some more expensive than others.
Rocket Car Wash also boasts a blog page that educates and advises customers on car maintenance.
Car wash memberships are becoming increasingly more common as businesses are using them as a catalyst for converting one-time customers into recurring buyers.
Subscriptions also guarantee solid revenue for companies as they allow business leaders to increase the prices for one-time customers.
"If I can get my car washed at any time for a low price, it beats any other car wash out there, especially it being better than the other ones as well," Derulo added.
According to AutoEvolution, a self-claimed auto encyclopaedia, aspiring entrepreneurs need around $300,000 to $500,000 to build a contactless car wash system with multiple bays. This price excludes the cost of the land.
Various franchises also estimate that touchless car wash businesses claim that an annual post-tax profit of $100,000 is possible.
The auto experts also predict that Derulo invested in Rocket Car Wash as he owns the land on which the car wash is placed, allowing him to make money while the land appreciates in value.
