How long can gas stations maintain low prices for consumers? Adapt or die. The answer lies in convenience stores that appeal to customers and attract them to their locations. For example, in Akron, Ohio, there’s an unmanned gas station that offers compressed natural gas, electric charging stations, and credit card slots.
Service stations
The fuel retail industry must make a fundamental transformation from a vehicle-centric business model to a customer-centric model that captures new product opportunities and extends the customer relationship. This requires transforming the network of service stations and other assets. It requires adjusting existing formats and divesting of unprofitable locations, while investing in new assets and formats to drive the expansion of new products.
In the future, a mix of digital and physical assets will drive sales. Advanced digital in-store experiences will become commonplace, and AI-driven innovation will allow for highly personalized offerings in traditional and mobile on-demand stores. Meanwhile, alternative last-mile delivery models will grow. Despite the challenges, the industry is not completely doomed by EVs, as the fuel demand of these vehicles will remain low. However, the deteriorating fuel demand will cause approximately 40% to 60% of service stations to become unprofitable by 2035, while their average return on capital employed will be low single-digits.
In the future, all service stations will be affected by this disruption, but the extent of the impact will vary according to their location. Service stations at highway locations may be more resilient and have a longer residual economic life than other locations. These locations will remain relevant for long periods as heavy-duty vehicles will continue to make fuel stops at these locations. Additionally, electric vehicle consumers may also make periodic stops at highway service stations for recharging or other nonfuel purchases.
Self-driving cars
Currently, self-driving cars aren’t available yet, but it is an exciting possibility. Bloomberg predicts a transition from gas to electric vehicles by 2030. This transition will change the infrastructure in many ways, including gas stations, which will need to be redesigned to accommodate electric vehicles. In the meantime, on-the-go recharging will only occur at destination locations.
While some people may not like the idea of driverless cars, others will find them to be a welcome change. In fact, some say that self-driving cars will make driving yourself illegal in some states. While some of this fear may be premature, it is worth noting that the technology is only a few years away from becoming a reality.
Driverless cars could also change parking patterns. Currently, consumers want to find ample parking spaces close to where they are going to go. But autonomous cars could eliminate the need to park for hours at a time, and could even drop off riders on the way to the destination.
Driverless cars can also reduce traffic accidents. The driverless cars would reduce the number of auto accidents, which could potentially save insurers millions of dollars. According to Accenture, driverless cars could reduce the need for traditional insurance by as much as 25%.
Adapt or die
In order for the gas station industry to survive in the future, it must adjust to changing customer needs. This means incorporating more amenities such as fully automated checkouts, food and drink options, and charging stations for electric cars. By offering more services and products, gas stations will be able to cushion the blow from falling consumer spending on fuel. In addition, stores that look and feel like restaurants attract higher ring counts at the cash registers.
Gas stations, like other retail businesses, are subject to constant changes. Increasing competition, regulations, and the rise of alternative transportation systems, such as electric and autonomous vehicles, are creating new challenges for the gas station business model. Furthermore, gas stations are in a prime location, and are set to become e-commerce hubs as consumers turn to these businesses for fuel.
The future of the gas station business is uncertain, but some experts believe that 80 per cent of service stations will be unprofitable by 2035. This means that approximately 100,000 gas stations could close down in the U.S. due to a shortage of gasoline. It is estimated that the average person in the United States will consume 20% less gasoline than they do today. This means that many gas stations will have to transform to meet the new needs of EV drivers.
With ecommerce affecting all aspects of retail, the gas station business must evolve in order to stay relevant. Creating a customer-centric experience will involve reinventing the customer journey. By addressing customer needs and introducing new technologies, gas stations can extend their relationship beyond the service station itself.
Driverless cars
Driverless cars may seem like a futuristic concept, but in reality they could be a boon to convenience stores. Long distance travel, for example, could soon be replaced by driverless cars that can make a stop at a nearby convenience store for passengers. However, these cars will still need to stop for food and restroom breaks, and roadside convenience stores could see an uptick in business. In addition, driverless cars could impact the travel industry, including hotels.
In the future, driverless cars may be able to fill up gas tanks without the driver’s involvement. Driverless cars may also be able to make purchases through a cloud-connected app that communicates with a gas pump. By 2020, this technology could become standard on most automobiles.
As driverless cars become more common, some consumers are concerned about their safety. In fact, a recent Uber crash that killed a pedestrian in Tempe, Arizona has prompted calls to slow down the adoption of driverless cars. Although, the technology is widely believed to be more safe than human-driven cars, there are still a lot of questions that still need answering. The biggest concern is that driverless cars could be vulnerable to hacking. Another concern is the possibility of accidents involving pedestrians or bicyclists.
Driverless cars are likely to have a significant impact on traditional automakers. However, the exact effect will depend on how widely AVs are adopted by consumers, and how quickly traditional automakers are able to incorporate these new technologies. As a result, traditional automakers will have to compete with new entrants into the market.
Charging stations
With the increasing demand for electric vehicles, charging stations will be increasingly important. A major factor will be government funding. Some cities have already committed to 20 percent electric cars by 2025, while others are planning to go further and require a certain percentage of parking to be EV-friendly. Another contributing factor is automakers’ heavy investment in this new technology.
The future of charging stations is incredibly promising. By 2030, there will be about 15 million plug-in electric vehicles on the road in the U.S., allowing the fast-charging of these vehicles for long-distance travel between U.S. cities. However, while charging stations can be found in many areas, it’s becoming more difficult to find high-speed stations. It’s also important for fleet managers to consider the type of plugs that their vehicles need. For instance, Teslas can use standard EV chargers, while many non-Tesla models cannot.
Public charging infrastructure is also critical to the success of EV adoption. Electric vehicles require a lot of energy to charge, and a charging station will provide a fast and reliable solution. Currently, there are around 50,000 public charging stations in the U.S., but that number will increase significantly over the next decade. Charging stations should be high-wattage, so that they can supply enough power to charge multiple EVs at a time.
Moreover, a charging station should have a good location. It should be visible to customers. It should be well-lit and equipped with security cameras. It should also offer comfortable seating for customers. Some charging stations might also offer valet charging or curbside delivery for customers.
Plug-ins
The advent of electric cars is rapidly changing the landscape of American highways. The White House is aiming for half of all new cars sold in the US to be electric by 2030, and auto giants are committed to the transition. To keep up with the fast-growing electric car market, utility companies are ramping up their network of charging stations. This expansion is essential for the EV transition, but it also poses a threat to gas stations.
One drawback of charging venues is that they require a lot of space and time, which isn’t available in a traditional gas station. It can take a few hours to fully recharge an electric car, and it also requires a place to park the car. If the gas station is unable to provide a charging station, most people will find an alternative.
Another challenge for gas stations is the rise of driverless cars. While these cars are not yet approved for public use, some cities are testing them. Driverless taxis are also a growing threat. In the future, automated cabs may rove the streets, refueling and plugging in.
