To put it another way: they don't have to create more dirty laundry, they just have to successfully sell people on "You've always thought that poor people use the laundromat, middle class people use their own washer, and rich people have hired servants, but guess what, people just like you can actually outsource laundry without any of the squicky associations you have with hiring domestic help. It's as easy and natural as ordering a pizza."
The problem these guys are going to have is that the quality of third party wholesale laundry is poor, always. Generally, what I see happening is that you have a mom & pop cleaner business who operates for years doing their own stuff. Then they grow / have equipment troubles / retire and bring their kids into the business / etc and move to either a centralized laundry plant model or outsource some or all of the cleaning.
Once that happens, your shirts get lost, buttons get crushed, etc.
So you have a premium service dependent on third parties for service delivery -- who usually suck. Hopefully they'll find a solution to those issues.