Gas Stations Down, Fuel Delivery Up?

Picture credit: Hans Eiskonen on Unsplash

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Over the past several decades, the number of gas stations in the United States has declined consistently from its peak in the 1970s.

While the advent of electric and hybrid vehicles is one reason for the drop, declining margins and increasing real estate values are also part of the reason.

The on-demand, online, app-fueled economy of modern life is also likely to play an increasing role in consumers moving away from filling up their vehicles at traditional service stations — a trend South Florida-based EZFill Holdings Inc. EZFL is betting on.

The company, which estimates the on-demand fuel industry in the U.S. to be worth a potential $500 billion, serves three buckets of customers: regular consumers, commercial fleets, and specialty sectors such as the marine, construction, and agriculture industries.

No more trudging to the gas station on a cold Tuesday night in the winter or alone late at night? You simply tap the app on your phone and place your order, maybe for a small subscription price, and EZFill will deliver fuel to your vehicle.

Big Oil Catching On

EZFill, which recently tripled the size of its fueling fleet, is not alone in the space. Big oil companies like Shell plc SHEL and Exxon Mobil Corp. XOM have also invested in the on-demand fuel delivery sector, pouring money into ventures such as TapUp and Yoshi, respectively.

But EZFill claims it is the only venture in the sector that serves all three customer buckets.

The company is in part building its national presence through its fleet partnerships. It announced signing a partnership agreement on Feb. 1 with Floridian Clinical Research, a medical research company based in Miami Lakes, Florida.

While EZFill is focused on its home state of Florida — an estimated $20 billion market — it is launching initiatives and partnerships along the East Coast as it seeks to provide major commercial fleets run by companies like Amazon.com Inc. AMZN and Avis Budget Group Inc. CAR in the future.

Food-delivery companies such as Just Eat Takeaway.com N.V.’s GRUB Grubhub Inc. and DoorDash Inc. DASH are other potential targets.

“Our mobile fuel-delivery service enables Florida’s drivers to remain safe and focused on their jobs, rather than having to take time out of their busy days to fuel up at local gas stations,” EZFill CEO Mike McConnell said at the time of the Floridian Clinical Research announcement. “As we continue to expand throughout Florida and elsewhere in the U.S., our expertise and relationships in multiple sectors will enable us to significantly extend our customer base.”

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.

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