INSIGHTS
- Companies behind gas delivery and savings apps are introducing new features such as one-time scheduling and the evaluation of driving trips.
- Automobile companies are partnering with either oil and gas companies or on-demand gas delivery companies to develop in-car concierge services such as remote fuel delivery.
- Oil and gas companies are rethinking its gas stations and are exploring new features such as shops, restaurants, and lockers for storing items ordered online.
OVERVIEW
Technology, innovations, and trends in the gasoline industry that influence consumers and their driving habits revolve around gas savings apps, gas delivery apps, and gas stations. Recent industry news point to the emergence and increasing adoption of gas savings and gas delivery apps, and the enhancement of gas stations and said apps. The latest innovations include new gas savings app features, gas payment through infotainment screens, and new gas delivery propositions, while the most recent trends include the increasing adoption of gas savings and delivery apps and the evolution of gas stations.
Based on recent articles and press releases, it appears that the gasoline industry is mainly focused on creating apps for customer convenience or bettering mobile apps that have already been established. Thus, most of our findings have to do with said apps.
TECHNOLOGY AND INNOVATIONS
New gas savings app features
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A slew of gas savings apps has cropped up thanks to the rising gas prices. These apps allow users to earn savings of 5 to 25 cents per gallon of gas when they fill up their tanks at certain gas stations. Features vary from one app to another.
GasBuddy, for instance, issues debit cards to users of its Pay With GasBuddy program and links said cards to the users' checking accounts. In emergency situations, such as the time when Hurricane Irma struck Florida, GasBuddy also posts a Gasoline Available Tracker that informs users about stations that do or do not have gas.
The company also recently launched its Trips feature, which allows users to track "where they have been guilty of fuel-inefficient driving." Levi Hamilton, who leads GasBuddy's product and consumer experience units, says that "the new trips feature provides motorists with transparency on how they're driving and, in turn, impacting their wallets."
The GetUpside app, on the other hand, enables users to view deals offered by participating gas stations, pay with a debit or credit card, and upload a copy of the corresponding receipt. Users can receive their accumulated savings, which reportedly range from USD 80 to USD 100 in a year, via PayPal or a check.
What sets the app apart from the other gas savings app is how it manages "the supply side of the retail equation." Adjacent gas stations compete closely on price, and the app takes advantage of the competition by offering its services to only one station in a geographical cluster, and by varying discounts across users. This way, competitors in the cluster will get an obscured picture of the station's true gas price.
Gas payment through infotainment screens
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Last year, Jaguar and Shell partnered to develop the first-ever in-car gas payment system. Through the system, "owners of 2018 Jaguar F-Pace, XE, and XF models can pay for Shell gasoline using just their vehicle's infotainment system."
Owners of said Jaguar models can use the Shell mobile app to find the nearest Shell station and once fueling is done, they can pay for the gasoline by entering the fuel pump number and confirming the amount in the infotainment system. The system will then display the receipt and send it to the owner's preferred email address.
The system will initially be implemented in the United Kingdom, but will eventually rolled-out globally.
New gas delivery propositions
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Several gas delivery apps have also emerged. Among these apps are Booster Fuels, WeFuel, Filld, and InstaFuel. Basically, these apps allow users to request gas and get their tanks filled without going to the station. Mini-tankers will instead go to these users' cars to refuel them.
There are a few differences among these apps, however. Booster Fuels, for example, distinguishes itself from competitors by not charging a service fee and by focusing on commercial fleets and big parking lots at corporate and university campuses. In explaining the opportunities in the space, CEO Frank Mycroft says: "I have yet to meet someone that says, ‘I love going to the gas station.' This industry hasn’t changed much in a long time. Our goal is to provide a more cost-effective and energy-effective way to get this chore done that doesn’t involve you having to go to the gas station yourself.”
In 2016, it was announced that Bentley Motors and Filld are collaborating to make Bentley vehicles capable of ordering gasoline whenever fuel goes below 25% of the tank's capacity. Christophe Georges, Director of Product and Marketing at Bentley, says "We are continuously investigating ways in which to offer our customers bespoke, unobtrusive, concierge-style services that afford them the greatest luxury of all: more time."
Filld has also partnered with Volvo to develop the in-car Volvo Concierge service, which allows Volvo owners to request services such as on-demand fuel delivery.
While other apps deliver on demand, Yoshi sets itself apart by using a "set it and forget it" technique. The company touts its one-time scheduling feature that remembers users' preferred refueling time.
TRENDS
Increasing adoption of gas savings apps
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More and more consumers give gas savings apps, such as GasBuddy, GetUpside, and those from Shell and Cumberland Farms, a try as gas prices increase. GasBuddy, for example, reports that enrollment in its Pay With GasBuddy program has grown steadily. It observed a monthly growth rate of 38% between February and March of this year and was able to maintain that level of growth in the succeeding months. The Pay With GasBuddy program now has around 300,000 users nationwide.
GetUpside has about the same number of users. Approximately 350,000 consumers use the GetUpside app, and remarkably, the startup was founded just about two years ago. Wayne Lin, co-founder and COO of GetUpside, explains that the escalating gas prices have driven the growth in consumer signups. According to David Jaffe, owner of three participating British Petroleum (BP) gas stations, "the thing that was appealing was it is designed to be a way to get customers who normally don’t come to our stations to visit them.” He reports that his stations are getting around six, mostly new GetUpside customers each week.
Jeff Lenard, one of the vice presidents at the National Association of Convenience Stores (NACS), says that "people will drive out of their way to save money on gas, even if they have to spend extra money on gas to get there.” He adds that "it's a great feeling among consumers to take control of something they previously didn’t have control of.” Little has changed since the time of Henry Ford when it comes to buying gas; only recently have consumers been given options.
Based on the American Automobile Association's recent survey, most Americans will alter their lifestyle or driving behavior to compensate for elevated gas prices. Around 25% of Americans would begin making changes at USD 2.75 a gallon, while 40% would do so at USD 3 a gallon.
Increasing adoption of gas delivery apps
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It appears the adoption of gas delivery apps has increased as well. For example, since it was founded in 2015, Booster Fuels has accumulated over 300 large-employer clients, including Facebook, Oracle, Cisco, and eBay, and delivered over five million gallons of gasoline.
The evolution of gas stations
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Multinational oil and gas companies such as British Petroleum and Shell are rethinking its gas stations. They are reportedly looking into new features that will attract customers, including additional fuel options, shops and restaurants, and lockers for storing items ordered online. They are also exploring the development of mobile apps that will make the refueling process quicker and more convenient.
CONCLUSION
In the gasoline industry, the technology, innovations, and trends that affect consumers and their driving habits center on gas savings apps, gas delivery apps, and gas stations. The latest industry news indicates the rise and broadening adoption of gas delivery and savings apps, and the improvement of gas stations and said apps. The increasing use of gas delivery and savings apps is driving the development of new app features and business models. Oil and gas companies are also actively exploring ways to draw consumers to its gas stations.