Jason Derulo has built a reputation as more than just a pop star, expanding his brand into business ventures ranging from social media to investments. However, one of his most talked-about claims is now drawing scrutiny.
The artist has repeatedly stated that his investment in Rocket Carwash is worth $2 billion, a figure that has raised eyebrows among analysts and industry observers. While the company itself is a legitimate and potentially strong business, comparisons with similar companies suggest that the valuation may not align with typical market standards.
Where the $2 Billion Claim Comes From
Derulo first highlighted Rocket Carwash in his 2023 book, where he described the company as a major investment and placed its valuation at $2 billion. He later reinforced that figure during an interview with Forbes, where he described the business as
“changing the way that people get their cars washed.”
In that same conversation, Derulo compared Rocket Carwash’s model to disruptive platforms like Netflix and Spotify, positioning it as a transformative force within its industry. The core idea behind the business is not new technology but a subscription-based model, allowing customers to pay a monthly fee for unlimited washes. This model has become increasingly popular due to its predictable revenue and scalability.
The Business Model Behind Rocket Carwash
Rocket Carwash operates express tunnel car wash locations with subscription plans typically ranging from $24 to $50 per month. This recurring revenue approach is attractive to investors because it provides steady cash flow and customer retention. However, the concept itself is not unique, as several established companies already operate on similar models.
The company is backed by City+Ventures, a real estate and investment firm, and Derulo joined as an investor around 2023. While his exact ownership stake has not been publicly disclosed, celebrity investments in private companies are typically limited, often falling below controlling levels.
Rocket Carwash currently operates roughly 30 locations across several U.S. states. While that footprint is respectable for a growing business, it is significantly smaller than industry leaders, which becomes important when evaluating valuation claims.
Comparing Rocket Carwash to Industry Benchmarks
To understand whether a $2 billion valuation is realistic, it helps to compare Rocket Carwash with established players like Mister Car Wash. Mister Car Wash, a publicly traded company before being taken private, operated around 500 locations and generated over $1 billion in annual revenue. It was recently valued at approximately $3 billion.
By contrast, Rocket Carwash’s estimated revenue is significantly lower. Even under optimistic assumptions, where each of its 30 locations generates up to $3 million annually, total revenue would reach around $90 million. Using a common industry multiple of three times revenue, this would place the company’s valuation closer to $270 million.
Another method is to evaluate value per location. Based on Mister Car Wash’s valuation, each site could be worth around $5.5 million. Applying even a generous premium to Rocket Carwash’s locations would still result in a valuation far below $2 billion, likely in the range of $150 million to $300 million.
What Derulo’s Stake Might Actually Be Worth
Without knowing Derulo’s exact ownership percentage, it is difficult to determine the precise value of his investment. However, even under generous assumptions, the numbers suggest a more modest figure.
If Derulo owns around 5% of the company, his stake could be worth between $6 million and $15 million. A larger 10% stake could place his share closer to $13 million to $30 million. Even in an aggressive scenario with a 20% stake, the valuation would still fall well below the $2 billion mark he has cited publicly.
While these figures are significantly lower than his claim, they still represent a highly successful investment. For most investors, turning a stake into tens of millions of dollars would be considered a major win.
