What was your last memory at the fuel station? Don’t remember? Why would you? Refueling your vehicle at a gas or fuel station is one of the most insipid activities in our lives.
Apart from being a dull activity it often becomes irritating if we are in a hurry to reach somewhere.
This situation might soon change as on-demand fuel delivery businesses are blooming in various parts of the world.
These services with the help of an on-demand fuel delivery app are delivering fuel at customer’s doorsteps with just a few taps on the phone.
In this blog, we will discuss what on-demand fuel businesses are? and how can you start one in your region? Before we dive deep, first we need to know what is an on-demand fuel delivery app.
What is an on-demand fuel delivery app?
The advent of Uber was a huge event not only for the taxi industry, but for every other industry.
It laid the foundation for others to replicate its model to gain the benefits in other sectors and services.
The process is similar to Uber, to start requesting for fuel, first you have to install and register yourselves.
Now, whenever you want to refuel your vehicle, all you have to do is make a fuel request via the app at your location.
The fuel delivery company will receive the request and send a fuel tanker at your location.
The designated person will use the GPS technology to navigate and will thus reach at your location.
Once the person reaches, then he/she will refuel your vehicle and mark the delivery as complete on the app. At last you will make the payment which will end the process.
Current leaders in app-based fuel delivery
On-demand fuel delivery services are unheard of many parts of the world. This is because it’s still a new concept. However, few services have caught everybody’s attention in the past few years.
Booster fuels is a California-based startup that delivers fuel to universities, commercial fleets, real estate owners, and campus-based companies.
The company claims that they provide their services to tens of thousands of people working at more than 300 companies which includes name like Facebook, PepsiCo, Cisco, eBay, and Oracle.
Since its inception in 2014, Booster fuels is said to raise $32 million in investment funding. The startup is looking to expand to new markets by injecting more capital.
My petrol pump
My petrol pump is a Bengaluru based startup that was set up in 2016. It’s the first company in India to deliver fuel at their customer’s doorsteps.
The startup has already delivered more than 3 million litres of fuel since it became operational.
My petrol pump provides its services only in Bengaluru where it has got more than 2000 B2B customers.
They also provide diesel to refuel generators of residential and commercial complexes.
Their customers include names like OYO Rooms, Lemontree, Treebo, and Hilton hotels.
Zebra Fuel is a London-based startup which was founded in 2016. After seeing the success of on-demand fuel delivery apps like Booster Fuel, Gas Ninja, and Yoshi, the Reda Bennis decided to replicate the success of a fuel management software in the UK.
In 2017, the company had reportedly raised $2.5 million from investors like the co-founder of Zoopla in the seed funding.
Filld is a mobile fuel startup that was launched in 2015 in the D.C. and Bay Area. Now it offers it commercial services in Seattle, Portland, Vancouver, Canada, and Bay Area with partners like Volvo, BMW, Sixt, and Dailmer car2go.
The company unlike Booster and other companies keep away from the busy traffic and delivers fuel only at night.
The company texts its customers twice a week to see if they need the fuel delivered overnight.
If the customer replies “yes”, then all they have to do is keep their gas flags open and the delivery man will refuel their vehicle. Customer can also reply “no” to decline the services.
How to build an on-demand fuel delivery app?
Now to start an on-demand fuel delivery service the most important thing you need is a fuel delivery application. Let’s have a look at the following process to build an app.
Build the fleet
The first thing that you must do after deciding to build an app is to build your fleet.
You must follow all the compliance process and ensure that your fuel business ensures all the rules and regulations of the country or the province.
Next, you have to develop your system. It’s important to mention that your system must be compatible with all the protocols that needs to be followed.
You can provide a comprehensive service by offering your customers with delivery of Petrol, Diesel, and Gasoline. Thus, you can cover the better market share and serve more customers.
Build IT infrastructure
Once you get the compliance cleared by the local authority, the next step is to build a strong infrastructure that can support your fuel-delivery business.
For that you would need to build a processing facility and a compliant response mechanism. You have to arrange the tools and resources to build these both.
Secondly, you have to incorporate the GPS system in all your fleet that would help in its tracking and management.
The IT infrastructure should be such that it allows you to digitize communication systems and information to produce the optimum value with service.
Reports and analytics
You need to have a robust report and analytics section that would have a dual role.
The first role would be to ensure safety since we are talking of highly inflammable liquids.
Reports and analytics help you to assess various parameters important to the business.
With it you can measure and control important things like pressure and temperature.
Apart from that it also provides you with various data that helps you in managing the supply and inventory.
The data from it gives you insights that helps you to take key business decisions.
Build the software
Now the time is to develop your own fuel delivery software. For that you have to bring together all the pointers and resources details which would help you to define the solution and to build a clear communication flow and functional architecture.
Initially, you have to build a robust backend. The overall success of the app’s functionality would be dependent on how strong the backend codes are.
It will also determine how intact the interface of the app is and how would it respond with the users.
After that you must check for validity of support of idea and performance.
You also have to ensure that the app is conforming with the app’s interface and communication layout to connect with the users.
How on-demand fuel delivery app can boost your business?
Fuel industry hasn’t seen much change in the past century or so. Going to the fuel station to refuel your vehicle is still a norm in this age of On-demand and instant services.
However, things are changing slowly with the advent of fuel delivery startups in the various parts of the world.
Let’s see the below factors that shows how going for an on-demand fuel delivery app would result in getting more customers.
Lack of a global leader
This time is the perfect to invest your money in a fuel delivery solution because there’s no global leader in the scene.
For example, Uber was a global leader of on-demand taxi industry which made it difficult for the local players to succeed.
However, that’s not the case with the fuel industry. You can easily take the first mover advantage to come up with your own solution and thus attract more customers.
Fuel station woes
Another reason why going for an on-demand fuel management solution makes sense is that fuel stations are already facing too many problems and it’s only a matter of time when they all will become obsolete.
Growing prices of real-estate, redundant business model, and rising crime at gas stations are some of the biggest roadblocks for the fuel station.
This would encourage more people to shift towards the on-demand fuel delivery.
High-quality and unadulterated fuel
You can provide your customers with high-quality filtered and unadulterated fuel.
This would attract more customers as they are getting more quality fuel as compared to that of the fuel stations.
Just imagine that you’re on a road trip with your friends and family and suddenly the fuel runs out. To add to your woes there’s not even a single fuel station nearby you.
This would be a nightmare for the travelers; however, with on-demand fuel delivery you can help such customers by providing emergency roadside assistance.
As mentioned earlier the services provided by on-demand fuel delivery apps are way superior than that of fuel station.
In this you can order for fuel without waiting for those long queues. This utmost convenience will surely attract many users to use your fuel services.
To attract and retain your new and existing customers respectively, you can start some customer loyalty programs.
You can give discounts or redeemable points to your customers which will keep them hooked to your services.
Challenges in starting a fuel delivery company
The idea of On-demand fuel management system is still in its nascent stage. In fact, it’s functional in only a handful of countries.
Due to which the upcoming fuel delivery companies will face the following challenges.
Abundance of investors
It’s quite ironic that abundance of investors could possibly possess a challenge against the fuel delivery companies.
It’s because when many investors and entrepreneurs come up with their ideas, then it becomes difficult to differentiate the companies that are genuinely working to achieve their goals against those who are just here to take the first mover advantage and haven’t focused much on their homework.
Safety-related issues have been a constant challenge for all the on-demand fuel-delivery businesses around the world.
To start a fuel delivery business, you must address these issues honestly to run your services sustainably.
You must take all the necessary precautions like usage of security systems and high-quality tanks that would prevent the fire hazards.
You must also ensure that you don’t exceed the regulatory amount which allows you to carry additional security.
On-demand fuel delivery services face legal hurdles all over the world. The main reason behind it is that there’s no clarity in the law which results in a grey area.
The authorities are strict due to safety reasons. However, slowly things are changing and we will see authorities in many countries making suitable amendments to provide a better environment for the growth of on-demand fuel delivery services.
On-demand fuel delivery is the future of fuel industry. For users it’s a superior alternative to the fuel stations.
Now, is the right time to invest your money in the fuel delivery software as it’s still at a nascent stage of rapid growth.
Current leaders in various countries have already showed us how successful it can be.
Surely there are few challenges which you have to face, but with the right strategy you can accomplish them all.
So, don’t waste any time and find a suitable development company to build your own fuel delivery solution that would boost your on-demand fuel delivery business.