Photo by Vincenzo Guira on Unsplash
The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.
Mobile fueling has emerged as a huge on-demand market in the last decade.
From a virtually nonexistent market to more than 44 companies worldwide, on-demand fueling is looking to disrupt the $500B retail gas industry. Corporate Goliaths like Exxon Mobile Corp. XOM, General Motors Co. GM, and Royal Dutch Shell Plc RDSA have already invested in on-demand fueling, and the business model is generating widespread interest from investors and consumers alike.
As each contender battles for market dominance, EzFill Holdings Inc. EZFL has emerged as a potentially successful candidate from South Florida. By providing same-day on-demand fills and subscription services for the routine fueling of a variety of vehicles, Ezfill has acquired more than $10 million worth of sales and delivered 3.6 million gallons of fuel.
Using its strategic partnerships with commercial accounts across the United States, EzFill aims to launch its services to the bustling markets of New York City, Long Island, Tampa and several others within the next 2 years.
Proponents of the on-demand fueling market have kept a close eye on the emerging trends that are driving growth in the market.
Consumer preferences have shifted towards the convenience of on-demand delivery of products and services, demonstrated by the dramatic growth of direct to consumer businesses in the food and grocery delivery, transportation, and home rental markets. Additionally, the index of commercial property prices in the U.S. has risen to an all-time high in the 2nd quarter of 2021, placing intense and growing rent expenses on gas stations, impacting their ability to operate. The growth in gas station crimes, including card skimming and theft, has similarly driven consumers from the pump to on-demand fueling. Finally, consumer trends and the COVID-19 pandemic have increased consumer’s desire for contact-free transactions.
EzFill hopes its on-demand fueling business model can take advantage of these emerging trends to provide consumers with a safe, convenient, and touch-free solution to filling up their tanks.
The Business Model
The on-demand fueling process is simple.
First, download the Ezfill application and create a user profile. Next, identify the location of your vehicle, leave the gas door ajar and place an order for a fuel fill. Finally, EzFill technicians arrive at the scene and fill your vehicle with the amount requested. The process works with consumer, fleet, and specialty vehicles like boats and all-terrain vehicles.
EzFill claims its delivery scheduling feature creates a recurring stream of income and that it has an 80% customer retention rate. Additionally, the company’s direct-fuel sourcing from ports or field depots creates discounted volume pricing, allowing for a significant reduction in variable costs.
Once EzFill sources its fuel, it undergoes a logistics and route optimization process to ensure fast delivery within a select time window. This process allows it to cut down on unnecessary costs and provide superior service.
As a final piece to the puzzle, Ezfill uses payment processing software and user analytics to ensure a convenient billing experience. For example, through the EzFill application, users can choose between multiple payment options, and their purchase history and preferences are aggregated to improve user experience.
In a similar way that Uber Technologies Inc. UBER disrupted transportation, Shopify Inc. SHOP disrupted shopping, and Airbnb Inc. ABNB disrupted hospitality, EzFill hopes to disrupt the fueling industry.
Of course, a comparable business model doesn’t ensure replicable success, but for those keen on the on-demand fueling initiative, EzFill may be one to watch.
The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.