A Comprehensive Guide to Fuel On-Demand Business - Odtap
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Fuel on-demand

A Comprehensive Guide to Fuel On-Demand Business

The drastic growth in the number of vehicles requires a corresponding increase in fuel stations too. However, the latter is unable to catch the growth of vehicles. Auto owners, to their intense annoyance, have to travel miles to find a station. Nevertheless, the companies offering fuel on-demand services are eliminating this problem.

Instead of searching for a station, the customers of these businesses enable service providers to find them. Thus, a car owner can have the vehicle tank filled as needed while sitting in the comfort of one’s home.

Why is On-demand Fuel Delivery an Entrepreneur’s Best Bet?

Fuel on-demand appears to be an odd one out in an era of on-demand transportation, healthcare, and home services. However, this business model is as incredible as any of the others. There are undeniable reasons to support this claim.

  1. The rate of light vehicle sales is significantly increasing. In a period of six years between 2013 and 2018, the number of light vehicles sold annually reached 17.2 million from 15.5 million (Statista). Each added vehicle reflects the increasing demand of fuel.
  2. Inside EVs estimates that a fuel station operations cost $250,000 annually. Besides, $160,000 is the average cost of purchasing products. These numbers do not include the costs of getting the ownership of a station.
  3. Time keeps a central value in the contemporary swiftly moving world. Research reveals that vehicle owners spend 12 hours a year in gas stations.
  4. The existing companies offering fuel on-demand service usually do not surcharge. Customers acquire tank filling facility at the same price as fuel stations. In fact, some apps provide a discount for promotional purposes.
  5. Fuel on-demand service does not necessarily require a substantial initial investment. The entrepreneurs can start by investing in mobile app and business registration fee.
  6. Fuel station owners can be your partners instead of rivals. You can collaborate with them to run a mutual business complementing each other.
  7. On-demand fuel business can collaborate with companies from other industries to ensure that each of the stakeholders is beneficiary.

For each of the above reasons, an investment in fuel on-demand app will be a vital one.

Success Stories of Some Fuel Delivery Startups

Uber is the pioneer in introducing gas on-demand model. However, some successful startups remind us that a company does not have to be famous to attract customers.

Booster Fuels

This startup raised $12.5 million in the initial two rounds of funding alone. Founded in 2014, it only serves the Dallas and Bay area but also plans to initiate in Seattle. Booster gets the fuel at a wholesale rate and hence, manages to sell at a cheaper price than stations. With its impressive services and degree of customer satisfaction, the company attracted an investment funding of $32 million since its inception.

Booster trucks have a capacity of 1200 gallons which are sufficient to fill over 40 tanks. The company also ensures a complementary cleaning of windows and windscreen.

Yoshi – Keep Moving

Yoshi moves a couple of steps ahead to offer carwash and maintenance at site of customer’s choice. Besides, it also provides fuel to boats at Texas coast. Customers can schedule an appointment for seeking services and also make modification in appointment.

The company is spread in various parts of the US serving customers in a total of 18 cities so far. It is also planning to expand to ensure services in every state. Yoshi raised $13.7 million in series A funding last years, and it is backed by General Motors and oil company giant ExxonMobil. These investments are likely to grow even more in the future since this money serves in marketing campaigns.

Zebra Fuel

Fuel on-demand is not limited to the US. Zebra Fuel is a London based startup which only offers diesel as yet. The company aims to start a petrol service too in future after settlements with regulators.

Despite the regulatory limitations, Zebra Fuel raised $2.5 million in seed funding. The startup primarily targets vehicles of businesses in construction and real estate companies. As per its owners, businesses account for over 90% of Zebra’s customers.

In the wake of electric vehicles, some entrepreneurs fear loss of investment. However, Zebra’s founder thinks otherwise. She believes that the transformation will take time. Besides, Zebra will also transform to offer on-demand charging facilities.

Electric Vehicle Charging On-demand – A feasible Concept

Currently, fuel on-demand covers petrol, diesel, and gasoline. Services for on-demand hydrogen fuel cell are also available. However, there is no known service for electric vehicles.

The statistics from 2018 reveal an impressive 81% increase in sales of electric vehicles (Greentech Media). This rapidly changing auto customer interest indicates that fuel consumption will drastically drop by the end of next decade.

The most challenging problem of electric vehicles nowadays is the deficit of charging stations. Entrepreneurs aiming to invest in fuel on-demand should take note that electric charging on-demand is the inevitable future. Thus, fuel services will remain dominant for over a decade. Afterward, businesses should also offer charging services.

Bits and Pieces of Fuel On-demand App

The points sharing value of on-demand fuel business and subsequent case studies leave little doubt about business’ significance. However, the factors including mobile app technology and marketing intensely affect such a business.

A fuel on-demand app should be simple enough to allow the most naïve user to utilize it. At the same time, it should be sophisticated enough to optimize routes for drivers and enable real-time tracking for customers.

The apps of successful fuel service startups offer separate modules for customers and service agents. Moreover, these companies also have a centralized monitoring panel which shares details of pending tasks and drivers’ availability.

On-demand fuel apps must provide multiple payment options. A virtual wallet similar to Uber Card will be handy because customers may not have an active credit card or hard cash.

To market the business, the companies offer discounts and excessive complementary services for growing and maintaining customer base. Some decent data analytics tools are available in the market. Access to these tools is easier at very reasonable rates.

Your mobile app for fuel on-demand service is only a step away. Contact us today to rebrand our purpose-built platform for your business.

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A data science and marketing professional with an insane passion to explore AI, Cyber Security, Quantum Computing, and future of mobility. Also carries an incredible amount of flare to write about things that he barely knows.