Oil Companies And Startups Seem To Want A Slice Of The On-Demand Fuel Delivery Service Pie

The on-demand economy is estimated to soar to $335 billion by 2025, according to PricewaterhouseCoopers (PWC) Research.

On-demand services have disrupted many industries, including travel, food delivery, transportation, healthcare, e-commerce and professional services, because of their ability to provide products and services quickly and conveniently.

The on-demand concept, which gained popularity in the transportation sector, spawned a number of startups that have positioned themselves as “Uber for…”. One example of this is providing fuel delivered to customers’ doorsteps at the tap of an app.

On-demand fuel companies have also reportedly been trying to capitalize on the scarcity in fuel resulting from the decline in the number of retail gas stations nationwide.

Fuel On Demand Could Make Commuters’ Lives Easier 

Among the earliest on-demand fuel providers in the United States are Yoshi and Booster Fuels, which are tapping their unique selling points to remain competitive in the fast-growing sector.

Yoshi, backed by Exxon Mobil Corp. XOM, has expanded to over 16 U.S cities in the past year, including Chicago, Los Angeles, Boston and Houston. Apart from gas delivery, Yoshi also offers services like oil changes, car washes on location and wiper blade swaps. It offers per-gallon discounts on gas to customers who choose these add-ons.

Booster Fuels, which markets its service as safe and more eco-friendly than traditional gas stations, delivers fuel to commercial fleet operators including Amazon.com Inc. AMZN, United Parcel Service Inc. UPS, Imperfect Foods, universities and real estate owners, as well as vehicle owners working at Bay Area companies, including Cisco Systems Inc. CSCO, eBay Inc. EBAY, Meta Platforms Inc. META, PepsiCo Inc. PEP and Oracle Corp. ORCL.

Never Pump Gas Again?

Miami-based EzFill Holdings Inc. EZFL, a more recent entrant in the mobile fuel sector, says it’s growing steadily to claim its position as the premier on-demand fuel delivery company in Florida.

According to CEO Mike McConnell, EzFill is the only on-demand fuel company to provide fuel delivery in the three vertical segments of consumer, commercial and specialty vehicles.

Its commercial fleet business is the key driver of its growth, accounting for almost 80% of its revenue, and allows the company to achieve high use of its trucks while delivering a recurring revenue stream. 

In fourth quarter of last year, EzFill announced several new fleet-fueling agreements in the Miami area, including with SERVPRO, 1-800-GOT-JUNK and ride-hailing provider Alto and plans to expand and service their fleets in additional markets in Florida and other U.S. cities in the near future.

EzFill says its fleet-fueling contracts drive steady growth by increasing sales and expanding its geographical footprint through servicing these companies’ growing vehicle fleets. 

The company serves individual customer vehicles through the EzFill App, which enables corporations to promote the service as an employee benefit - a key component of its growth strategy. EzFill can serve a large number of customers at once via this arrangement, by delivering fuel to office parks, hospitals and other employment centers, thus maximizing the use of its trucks.

The company has incorporated specialty verticals such as boats into its business model. EzFill can deliver fuel to boats docked at marinas or private residences. EzFill recently announced an exclusive agreement with Brickell Place Marina in Miami to regularly service over 200 customers who dock boats there.

McConnell says EzFill plans to scale up and lead the transition to on-demand fueling across the country. To this end, the company is tripling the size of its fueling truck fleet for its entry into New York and other markets on the East Coast.

Learn more about Ezfill and its services here.

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

Featured photo by Dawn McDonald on Unsplash