THE FUTURE OF GAS STATIONS OVER THE NEXT DECADE
Written by Valentina Perez
The era of gas service stations will come to an end sooner than later, as environmental regulations become stricter to combat fossil fuel emissions. Consumer behavior is continuously changing as well; with GPS technology at our disposal, efficient driving leads to fewer people at gas stations to fill up their tanks. In addition, the demand for electric and hybrid vehicles is increasing due to favorable environmental effects and tax incentives for businesses and individuals. As technology continues to change consumer behavior, fuel retailers need to re-evaluate their business practices if they want to thrive in the market. When evaluating their business model, service stations must consider modernization, provide electric vehicle services, and address other customer needs. The future of service stations must embrace the next generation of energy technology and realize the potential for revenue growth by diversifying their fuel offerings.
In the '60s, the early adopters of self-service gas stations and convenience stores in the United States saw a massive increase in gasoline purchases and store sales. Because convenience stores could sell unbranded gas, consumers saved up to 10% per gallon at self-serve stations. Low prices on gas and convenience for essential goods prompted the expansion of self-service dispensers. Later, in the mid-'80s, card payments got installed onto gas pumps, making self-fueling a seamless experience while also cutting the line at the convenience store. Today, we are in a moment in which service stations must adopt innovative strategies that will satisfy current consumer needs.
Transitioning into a new era involves switching oil for renewable energy, embracing new technologies, and strategies to promote growth and development. According to Accenture's report, researchers suggest three key priorities will accelerate transformation for oil and gas companies. First, they discuss embracing the next generation of digital technologies, for example, blockchain, artificial intelligence, extended reality, and quantum computing. The report says that "combining DARQ technologies could help oil and gas companies boost their market capitalization by 44 percent". Second, they suggest building the workforce of the future, highlighting the need for a workforce that is sensitive to environmental issues and is technologically savvy to optimize productivity. Lastly, the report advises companies to align with stakeholder and investor concerns by including biofuels, renewable electricity, and natural gas in their portfolios. Digital transformation in the oil industry is a necessity for revenue growth and a greener future.
Digital innovation in service stations will change the conventional fueling experience through transformative customer engagement models. Accenture has suggested three actions fuel retailers can adopt to leave the traditional fuel station model behind. First, they suggest companies go beyond commodities as their core investment strategy and start diversifying the fueling station's offerings. Second, they highlight the need for gas stations to innovate their digital technologies by using mobile platforms and cloud solutions, providing customers with personalization, speed, and convenience. Lastly, Accenture encourages gas retailers to become an early adopter in this new generation of consumer behavior. Utilizing new digital technologies at service stations will deliver a positive customer experience and improve business performance.
Fueling stations will not only be a partner for environmental improvement, but they will also be on the leading edge for road travel and commuting of the future. It's time to think outside the box, leave the outdated business model of gas stations behind, and embrace the next generation of digital technologies. Accelerating such transformation will provide consumers with sustainable alternatives and optimized digital experience. At the same time, service stations can see positive impacts on their revenue stream by diversifying their fuel and service offerings. More importantly, modernizing filling stations will get us closer to addressing the climate change issues combustion fossil fuels have generated.