On-demand fuel delivery service is a word that is unheard in most countries but it has been getting attention for the past couple of years. People are becoming aware of such services and how these services are bringing energy (Petrol, Diesel, Oil, etc.) at their doorstep.
People who are consuming mobile fueling services are smitten by the convenience offered by it. They know that by just a few taps they can have fuel at their service. They are aware that it would not only save their time but also overall fuel cost by eliminating the need for detours from Home to Gas stations.
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What Are Business Opportunities in Gas Industry?
Leading fuel delivery startups like Filld, Booster, MyPetrolPump, Yoshi, Gaston, fuelster, and more are raising exceptional capital from its backers. This has inspired more entrepreneurs to start their business in this sort of on-demand delivery space.
We all know that Uber is present on a global level as taxi service provider. But there is no Global leader right now in this particular space. Hence; there is a high opportunity for forging your place by investing in this lucrative business.
Are you wondering how to start a gas delivery business?
In this article, we are going to learn about the nitty-gritty of starting On Demand Gas Delivery Service in your city. We will clear which licenses you will need and compliances you must follow, how an app will play its role, what physical infrastructure you will need, and why doorstep delivery of fuel is the future of the oil & gas industry.
How to Start On Demand Fuel Delivery Service?
Popular gasoline delivery services are serving the gas to homes, residential buildings, offices, schools, boats, transportation fleets, and individuals.
There is a vast market for the future scalability and expansion for Uber for fuel services like business. There are multiple end-users you could target. All you need to do is to find the right location. This should be your initiation activity. For example, if you are planning to start on demand fuel delivery in dubai, you need to choose a location where people can easily reach, connect and get your services.
Besides, as you are not aware of the market and you are testing the waters, you can start with just a Petrol delivery service to a smaller area. Later, you can expand it as you get the momentum.
There are certain prerequisites for Starting a Fuel Delivery Service. Before, you hop onto building an app for your service, you have to contemplate some important aspects of the business. You have to follow some norms, regulations, and compliances.
#1 Licenses & Regulations
MyPetrolPump, a startup from Bengaluru, India, had faced some legal challenges after it got staggering funding of $1.6 M. Doorstep delivery of fuel was a new concept in India at that time. Unfortunately, the startup got in trouble just after the year it was launched due to not following regulatory guidelines.
A government agency named, petroleum and explosive safety organization (PESO) released an order to state-run oil marketing companies and other dealers to not supply fuel to the company. It had caused some adversity in its run.
The point is, if you want your on demand fuel delivery service to run without any roadblocks, always keep yourself updated with the regulatory norms and guidelines.
Since safety issues are universal for these kinds of apps, it is important to comply with all the necessary rules and regulations. Get permission and requisite licenses from the federal as well as state authorities.
All the USA based gas on demand startups follows EPA and PHMSA regulations and compliances.
#2 Fleet
An efficient Fleet of a vehicle is a bedrock of any successful gas delivery service.
Until you expand your delivery service to other areas of the city, you could do it with only two or three delivery vehicles for on-site fueling. Make sure that your mini trucks are installed with the mobile fuel dispensing unit. Apart from that, installed GPS will help you track your fleet and its activity precisely.
As your business gets good traction and grows economically, you could increase the fleet of vehicles and other technologies.
#3 Hire HAZMAT Drivers
Because you are diving into the delivery of inflammable gas to the specialized storage or individual, a safe journey of the fuel vehicle becomes indispensable.
HAZMAT(Hazardous Material) Drivers are rigorously trained professional truck drivers who successfully transfer inflammable fuel to your doorstep. They are not only trained for driving safe but they also handle hazardous materials, adjust routes on road traffics and population density.
Meticulously research for the commercial drivers who could handle, deliver and dispose of the on-demand gas to the end users safely.
#4 Collaborate with the Fuel providers
You might ask where should I get the fuel from?
For that, you have to find a perfect source from where these gas stations get their fuel. You don’t want any interruptions in the flow of fuel supply. Hence, make sure that you collaborate with the right fuel provider.
As long as you don’t have your fuel carriers, you could join forces with the carsharing or fuel delivery vehicle provider. Hence; you will have enough fleet power to ensure smooth delivery to every customer.
How an App Plays Significant Role?
You are acquainted with the compliances and fleet & driver requirements. Now what?
A fully featured mobile app will be the backbone of your Uber for gas like business. For this reason, having an outstanding fuel delivery application for your business is imperative.
The functionality of the app plays a major role in the user experience. So ensure that you are not compromising on any of the app development aspects and ending up in a sloppy app.
You will require two main apps – one for customers & second for drivers and, a website panel.
Since you are the owner of the company, you will need an admin panel for monitoring and managing all the operations. You will be updated on every pending, in-process, and completed orders from the customers. You will be able to manage and track drivers’ operations as well.
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Must Have Features For Gas Delivery App
You want to ease your customer’s life. You are building a platform for eliminating the need for your user to go to a gas station.
Therefore, You must build an exceptional fuel delivery mobile app that has the most important and time-saving features. All you need to do is find a company that offers on demand fuel delivery app development services and explain your need.
Here we have compiled a list of must-have features that attract more users to use the app.
Adjust Pin To Vehicle Location (Location-based GPS)
People sometimes get stuck on the obscure areas from where getting to the nearby gas station becomes impossible. Providing pin vehicle location option allows the user to direct the delivery expert to reach to your vehicle easily.
Select Type of fuel, Quantity, and Time Window
You must provide options for users to select their preferred vehicle and type of fuel they use.
Besides, Your users should be able to select how much fuel they need at a particular time.
In-App Text or Call
Your customers’ time is important. You don’t want them to keep unsure about when the fuel delivery is going to happen. Integrating In-app text or Call options directly connects your users to the delivery experts without exiting the app.
Promotions
Incorporate the promo codes tab to your mobile app. Customers love coupons and deals they get on purchasing any product. Providing them with alluring offers like free delivery or free car windshield wash enforces trust for your brand.
Monthly Membership
You should tackle your loyal customers with extra-care. Monthly membership allows your regular customers to put prescheduled fueling order for the whole month which eliminates extra efforts in ordering fuel on a daily basis.
Payment
Same as any other on-demand delivery services, you should provide an option for choosing popular online payment methods.
Real Time Tracking
Customers are always curious about the location of their parcel or any other services. Including real-time tracking of a fuel tanker in the app, you let your user know the exact location of the truck. So instead of incessantly waiting, they could invest their valuable time in other worthy tasks.
How Much Does it Cost to develop On Demand Gas delivery app?
Mobile app development cost depends on manifold reasons namely type of platform, design complexity, number of features, development company, the county in which you develop the app, and more.
If you prefer your fuel delivery app development in iOS Platform, then you will have to pay around $25k. If you choose Android, then be prepared to pay $23k.
There is another option that is considered fast and affordable. However, you have to compromise the quality of the app. And that option is, Hybrid app development. You won’t need to develop two separate apps for iOS and Android. The hybrid app for on-demand gas delivery would cost you around $15k.
Note: This is only a cost of app development. Fleet vehicle cost and Licence fees are not included.
Future Expansion
Suppose, you have successfully started your fuel delivery startup and it is getting a fair response from customers.
Now what? What would you do for future expansion? What is the scope of scalability?
In this scenario, you could go and serve something that provides value to your customers.
For example, Yoshi, the delivery startup provides washing services and vehicle service along with regular gas delivery.
Case Study: Booster
Booster is a leading on-demand gas startup has raised $56 M for the Series C round.
The company has been showing promising growth in spite of having competitors like Filld and Yoshi.
The startup is a brainchild of Franck Mycroft, a Boeing engineer who had founded the company in Seattle. It then moved to silicon valley.
The startup wanted to eradicate the inconvenient trips and time wasted on the gas station. Keeping this goal in mind the startup serve their employees by filling the tank while the employees are at work. Plus; at a cheaper rate than the gas station.
It has collaborated with the companies like Cisco, Oracle, and Facebook to fuel the tank of their employees.
Today Booster is working with top universities, transportation fleets, and other major areas where on-demand fuel would be the best solution.
Final Thoughts: Time to Start Fuel Delivery Service in Your City
Uber for gas is one of the most unique and unexplored business space. Because there is little to no competition in this potential market, you could deliver fuel at the doorstep by providing consumer-friendly, safer, and sustainable refueling experience.
We have been a technological partner with many online delivery businesses. If you have any doubts or questions regarding building a fuel delivery app and panel, we would love to guide you.
It’s time for the action. Start your on-demand fuel delivery service app or mobile fuel delivery software in your city today!
FAQ on Starting on Demand Fuel Delivery Service
Currently, there are several startups running successfully with different business models. Filld and Booster are the most promising fuel delivery startups in the market today. An online fuel delivery company named Cafu is also getting attention in the MiddleEast counties.
Whether it is an Unleaded regular and Unleaded premium fuel or diesel, these companies get their fuel from the same provider where the retail fuel stations source from.
Yes! since you are delivering hazardous material like oil, gasoline, and diesel, safety becomes prime concern. You will need to adhere to some state and federal level compliances and regulations. Always research for the required licenses before starting your delivery service.
Delivery fees rely on the time between taking the order and delivery of gas. So if your user demands fuel in urgency, the delivery charges will be high. It also depends on the distance of the consumer from the delivery vehicles.
There are two options for developing your fuel delivery app; One is native development and the other is Hybrid development. Android app will cost you $23k, whereas the iOS app will cost you $25k.
Hybrid development is a cheaper option. You could build your app on both platforms for $15k.
Most of the published articles have stated that hydrocarbon-based fuels are going to be predominant across the world till 2040. And that’s a lot of time. as far as the electric vehicles are concerned, you could always cope up with the changing dynamics of the fuel business.
