How to Start Your Own Fuel Delivery Business?
Starting your own fuel delivery business can be lucrative in today’s fast-paced world, where convenience is key. Thus, various startups & fuel businesses worldwide are focusing on starting a fuel delivery business. Fuel companies and gas station owners can provide a convenient service to customers, which can attract more business through fuel delivery apps.
As more and more customers are looking for ways to order and receive fuel to their preferred location, the demand for fuel delivery services is increasing. Such situations necessitated the development of an on-demand fuel delivery app for fuel companies.
Moreover, fuel delivery apps can offer easy payment options, reducing the administrative burden on fleet managers and improving the overall payment process.
However, starting a fuel delivery business can be a complex process as it requires more than just delivering fuel to customers. So if you want to start a fuel delivery business and looking for exact information about it then, you have reached the right place.
In this blog, we will provide a detailed guide on how to start a fuel delivery business, its business model, top-leaders in the fuel delivery industry, challenges, and key elements.
Before that, we will walk you through the basics of the fuel delivery business & some of its key elements of it.
So, let’s get started.
What is a Fuel Delivery Business?
A fuel delivery business is a service that delivers fuel directly to the customer’s location, including homes, businesses, and other locations. Most businesses possess a fuel delivery business application that benefits the business and the customer.
Users place an order from anywhere and track it online the delivery status. This app can streamline the ordering process for businesses, inventory management, and real-time tracking making it easy to manage delivery routes and schedules.
- According to the Globenewswire release, the Global Transportation Fuel Market size reached US $1,357.37 billion in 2022.
- The on-demand fuel delivery market is expected to grow at a CAGR of 5.32%.
- Fuel delivery businesses can offer high-profit margins and are expected to reach US $1,763.64 billion by 2027.
This business is quickly gaining traction in the market. Some parts of the world, such as the United States and the United Kingdom, are well-known.Now, let’s look at the key elements.
Key Element in Fuel Delivery Business
- Reliable delivery of fuel
- Well-maintained fleet of vehicles
- Trained drivers who can navigate routes
- Fuel Quality
- Competitive pricing
- Excellent customer service
- Safety & compliance
- Technology Integration
Above all points are self explanatory except Technology Integration. Fuel delivery business runs primarily on technology i.e. mobile apps for customers & drivers and backend for admin and vendors to manage the orders, drivers, stock, etc.
We have provided detailed information on the technology integration part as you will read further. Feel free to ask questions if you have any. We would love to answer all your queries and help you in starting a successful fuel delivery business.
Now, let’s take a look at the benefits of the fuel delivery business.
What Are the Major Benefits of an On-demand Fuel Delivery Solution for Your Business?
If you are running a fuel delivery business offline, it is the best time to offer an on-demand solution. Here are some benefits you can get by starting an on-demand fuel delivery business.
In the digital era, most people don’t like to stand in the queue to fill petrol in their vehicles. With an on-demand fuel delivery solution, you allow better convenience to customers by providing them fuel in the comfort of the couches.
Reduce Maintenance Costs
Maintenance cost is one of the most common issues for a fuel delivery company that wants to enhance its business. In this era, you don’t need to invest in legal compliances or invest highly in traditional combustible supply stores to supply fuel efficiently. You only have to make a fuel delivery app to enhance profits and decrease maintenance costs.
With the help of an on-demand fuel delivery app, you can automate your business operations. Firstly, you don’t have to save large files and papers to look after fuel delivery records. Secondly, you can retrieve necessary information whenever you need it. In addition, you can monitor your transactions with the help of strong analytics integrated within the app.
Generate High Revenue
By starting an on-demand fuel delivery business, you don’t have any limit on the total amount of revenue you can generate. Depending on your business skills and the amount of time & effort you put in, you can generate high revenue.
Gain Market Leadership
The on-demand fuel delivery business has just started getting traction, and it’s perfect for investing your money in fuel delivery solutions. Build an on-demand fuel delivery app so that you can reach a wider audience & become a leader in this industry.
Fuel Station Woes
This can be a frustrating experience for drivers who are in need of fuel to continue their journey. Long lines, out-of-order pumps, and high prices can contribute to a negative experience. As a result, many drivers are turning to on-demand fuel delivery services to make their lives easier & avoid the headaches of traditional fuel stations.
Build an On-demand Fuel Delivery App/System
Offer the convenience of ordering fuel anytime, anywhere with a fuel delivery app along with an easy to use backend to manage the orders and data.
- Customer app, Admin panel, and Driver app
- Real-time Tracking of Fuel Delivery
- In-app Payment and Order Management
Get in touch with us to get a free quote & estimated timeline.
After knowing the benefits of starting a fuel delivery business, it is time to create an effective business plan. But before that, have a quick look at how the fuel delivery business works.
How does Fuel Delivery Business Work?
- The fuel delivery process is similar to Uber. Here, a fuel delivery business utilizes a mobile app to carry out the business.
- A user has to install an app and register using their email, mobile number, or third-party signup via Facebook or Google.
- Then the user submits a fuel request by pinning their location.
- If the user’s vehicle location is different from where they are, they can manually select their location on the map.
- The assigned individual will navigate using GPS technology and arrive with a fuel tanker at that position. Then that professional fills up the vehicle’s tank and completes the delivery through the app.
- Lastly, money is deducted from the user’s desired payment method that they opted for while requesting fuel delivery.
Let’s understand this using an interactive infographic.
After understanding how it works, it’s time to make a business plan. Now, let’s take a look at the business plan.
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Fuel Delivery Business Plan
It consists of various essential things like routes, the total number of vehicles, types of fuel, and total off-takers. You should define the total amount of funds you have to invest in business and marketing strategy.
Here are some of the things that you should analyze for your business:
- Existing cost of fuel vs your profile in an order
- Total fuel delivery sites you will operate in an area
- Total number of fuel delivering companies in the region
- Various challenges in the fuel delivery business
- Latest industry trends that affect your business
The fuel delivery business plan should help you to determine the revenue projections of the total expenditures and ongoing expenses required during and after starting the business.
After making a proper business plan, it’s time to execute it by starting a fuel delivery business. We will now look at the popular fuel delivery businesses and a streamlined process of starting a fuel delivery business.
7 Steps to Start a Successful Fuel Delivery Business
Let us look at the steps involved in starting a fuel delivery business.
1. Get License from the Required Authority
The first and most essential step in starting a fuel delivery service is to obtain a government-issued license. If you want to operate your fuel delivery company successfully, you must follow the latest norms and guidelines. In the United States, all gasoline delivery startups must adhere to EPA and PHMSA rules.
Besides this, fuel-based businesses are subject to a wide range of safety requirements and laws. You must follow laws and regulations according to the region. One of them is obtaining a license from federal and state authorities.
2. Developing a Fleet of Fuel Delivery Trucks
Once the authorities have authorized your license, the first thing you will need to do is start assembling your fleet of fuel delivery trucks. Building a fleet of fuel delivery trucks is crucial for laying the foundation for fuel delivery services.
You must adhere to all compliance procedures and ensure that your on-demand fuel supply business complies with national and provincial standards.
Firstly, you must adhere to all compliance procedures and ensure that your on-demand fuel delivery business complies well with the norms of a particular country or province.
Secondly, you should establish a system. It is essential that your system is congruent with the latest protocols.
Additionally, ensure that GPS trackers are fitted to track the truck drivers efficiently. Also, ensure that your truck complies with all federal and state safety and quality regulations.
By following these things properly, you can provide an extensive delivery of petrol, diesel, and gasoline to the customers in the region. Thus, you will be able to cover a larger market share and serve more clients.
3. Hire HAZMAT Drivers
Fuel is a flammable substance, so you will need to find professional HAZMAT (Hazardous Material) drivers who can properly transport, deliver, and dispose gasoline to your customer.
HAZMAT drivers are highly qualified professional truck drivers who can assist you in transporting flammable products. HAZMAT drivers know the process of securely transporting combustible fuel to every customer.
Moreover, they have knowledge of the best road routes based on the population & the density of the area. Therefore, you should hire professional HAZMAT drivers for your fuel delivery business.
4. Partner with the Fuel Providers
Your fuel delivery service is worthless if you don’t have any fuel. No one wants the fuel supply to be interrupted. Therefore you must collaborate with the best gasoline provider. You must choose a source of gasoline for your business that is both convenient and affordable.
You can partner with a car-sharing or fuel delivery vehicle supplier to cover a broader region. Because the more delivery fleets you have, the better you can serve your clients.
You can create an app or web portal where they can register themselves easily and start sellings their fuels. This helps them to increase their revenue and you will get your fuel provider. You can do this job in a few clicks using technology.
Also Read: How To Build A Marketplace App (For Any Business)?
5. Build a Robust IT Infrastructure
After getting the necessary permission and clearness, you will need a solid IT infrastructure, including a processing facility with feedback and a complaint resolution system. In order to construct both of these things, you must first gather the necessary tools and resources.
Here, you should consider integrating GPS in the fleet because it is essential for tracking and management. Additionally, you can add various security technologies to the solution to avoid fuel fraud and assure complete safety. The IT infrastructure should enable you to digitize communication systems and information to provide the best possible service value.
Get Your Own Feature-Rich Fuel delivery System
6. Integrate Reports and Analytics
To maintain your company’s track, you will require business analytics software to examine the key metrics.
Initially, you should consider its safety as you are supplying inflammable liquids.
Secondly, you can measure and control several things like pressure and temperature with the help of resorts and analytics.
Thirdly, the section provides data that help you to look after the entire inventory and supply of the fuel.
Lastly, it also gives its users a lot of information that you can utilize to make essential business decisions.
This part is also part of technology integration and can be developed in the admin panel where business owners can easily access all the data and take informed decisions.
7. Build a Fuel Delivery App/System (Technology Integration)
Now, we are moving to the most essential step of the fuel delivery business, i.e., to build your fuel delivery app/system. To do so, gather all the information and references that will assist you in defining the solution and creating a clear communication flow and functional architecture.
The best way to execute this step is to hire professional software company and let them do this job as this step will require professional knowledge and technical skills.
Guru TechnoLabs – an award-winning company, can help you with this process. With our years of experience, we can help you from idea to launching and post launch support as well. Contact us, if you need any help with this process. We are providing free consultation and non-obligatory quote and timeline to execute your idea.
For your better understanding, we have given the list of the primary features without which your application is incomplete.
Key Features You Should Include in a Fuel Delivery App
We have compiled a list of the most crucial features your fuel delivery app should include. Let us go through them.
Real-time Fuel Delivery Tracking
Navigation is one of the most significant features of the on-demand fuel delivery app. Gas truck drivers should be quickly able to locate the delivery location via GPS. This feature will boost your app’s productivity by making the process of obtaining fuel online easier.
Also, you should validate your app has advanced functionality, such as the ability for users to pin their position manually. This functionality allows users to pin their vehicle’s location even if it’s parked elsewhere. When someone gets lost in the middle of an obscure area, the real-time tracking feature helps them to move forward. Using this feature, they may quickly pin their location to get their vehicle refueled.
Also Read: Mobile App Development Trends For 2023 And Beyond
Choose Type, Quantity, and Time of Fuel
Any fuel delivery app should have the ability to allow customers to modify their orders, which is a fundamental function. Users can select the fuel type for their car (petrol or diesel).
Likewise, they have the option of selecting the fuel quantity. Users can also choose when they require fuel. You can make it easier for users to acquire a customized gasoline delivery by offering essential things in the app.
Multiple Payment Options
All on-demand delivery services throughout the world now have access to this feature. With an on-demand fuel delivery system, you can give your customers various payment options, including debit cards, credit cards, and mobile wallets.
You can integrate secure payment gateways in your app for customers.
Order history is the most convenient way for a propellant delivery business admin to keep track of orders for various fuel types. With on-demand petrol delivery services, you can keep track of the deliveries assigned to drivers.
This feature allows consumers to save and download their order receipts to their smartphones. As a fuel delivery business owner, you can keep track of your orders in real-time, including pending, ongoing, canceled, and completed orders.
Accept/ Reject Orders
Drivers can easily accept or reject delivery orders with the help of an on-demand fuel delivery service. If any driver does not accept the delivery request, the admin will pass it on to another driver. Owners of fuel delivery companies have the option of accepting or rejecting orders. They can even put the order on hold if they cannot execute it within a specific time frame.
An on-demand diesel delivery system allows your drivers to make quick deliveries in this way. Furthermore, an on-demand fuel delivery app ensures that you do not miss a single customer and transfer the order to other drivers if a driver is not available.
Rewards & Offers
Provide some of the best offers and promo codes to the customers while they order anything from your app. It helps you to establish long-term relationships and also build customer loyalty.
Just as other mobile apps, an on-demand fuel delivery app should also provide push notifications. Customers aren’t interested in opening the app every now & then.
Hence, push notifications are best to urge customers to open the app and send regular updates.
After having a clear picture of your fuel delivery app, you can reach out to us if you have any additional insights needed. We are a leading mobile app development company having years of experience building mobile apps and can provide a suitable solution.
After knowing the features & process of building a fuel delivery application, you might have questions regarding the cost of building a fuel delivery business. Here, we have explained the estimated cost of creating a fuel delivery application. So, let us start.
Cost to Build a Fuel Delivery App/System
The cost of developing a simple fuel delivery app will be around USD 20,000. It will take 4 to 6 months to build the app.
However, as the app’s complexity grows, so does the cost of development, which can range from USD 25,000 to USD 35,000 for moderate to advanced levels.
Some factors affecting the on-demand fuel application include geographic location, target platform (android or iOS), integrated technologies, and features. The cost of developing an app in the United States or Europe is more than elsewhere.
Testing tools are also expensive aside from UI/UX design and development. The cost of an app also depends on whether it is a native or hybrid app.
To get more information about the different factors affecting cost to build a mobile app, check this guide on app development cost.
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- Vendors Panel (Optional)
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Now, let’s have an insight on what type of challenges you need to face to enter into this industry.
What are the Challenges of Starting a Fuel Delivery Business?
Here are some of the difficulties that fuel delivery businesses may encounter and you should be aware of them to start a successful business.
Fuel is well-known for being expensive. It is one of the most costly items on the planet. Financing a fuel delivery company is no longer a stroll in the park. To fund your business, you will need a steady stream of income.
However, if you invest money in your business regularly, it could become your lucrative source of income. As a result, you may be able to expand your company with earnings.
While dealing with the fuel delivery industry, the safety of people has been a source of concern. You must obtain an approved license from both federal and state authorities. Similarly, trucks should also follow safety rules. Operating a fuel delivery business necessitates tremendous caution.
These were some of the most typical issues fuel delivery companies had to deal with regularly. You can run a successful mobile fuel delivery business by overcoming these obstacles.
Legal issues surround on-demand delivery services all around the world. The fundamental reason is that the law is unclear, resulting in a gray area.
Because of safety concerns, the authorities are strict. However, things are progressively changing, and governments in many nations are making appropriate changes to foster the rise of mobile fuel delivery businesses.
While starting a fuel delivery business, one of the things that might be difficult to tackle is the orders. Hence, you should make a proper system to manage your orders smoothly.
One of the critical challenges that fuel delivery businesses have to go through is delivery routes. Due to any misdirection, fuel delivery businesses face issues in sending products. Customers will get late deliveries & which ultimately affects the business.
Top Leaders in on-Demand Fuel Delivery Services
On-demand delivery of fuel is not that much popular worldwide. However, certain businesses have joined this untapped market and got users’ attention.
If you are new in the fuel delivery business and want to create a mobile app, you should check out some of the successful fuel delivery businesses for your inspiration.
Booster is one of the most popular fuel delivery service providers in the USA. It was launched in 2015 and currently offers services in Dallas and the Bay Area. According to growjo Booster app has received funding of $88.6M until now. The estimated annual revenue is currently $92M per year.
Using this app, you can get fuel at the best price in the market. You can also compare the fuel prices with other nearby gas stations.
With Booster, you do not have to spend a massive amount of time in the queue at the fuel stations. You can order double-filtered regular or premium gas from the app and decide the schedule. After this, you need to pin the location from the app, and the Booster fills the tank.
One of the main benefits of Booster is same-day delivery. Hence, you can fill up your tank in advance before going home from the office or while visiting a nearby city.
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Yoshi is another well-known fuel delivery application offering on-demand fuel delivery services across the USA. Besides fuel delivery, it also offers various other services like a car wash, oil change, tire checks, windshield cleanings, etc. Thus, you do not have to worry about fuel and other vehicle-related services.
Yoshi ensures to keep the per-gallon gas prices with the lowest-priced gas station in the region. Hence, you can get the fuel at the most effective price.
Customers don’t have to wait to fill up their car tanks. They can simply enter the location, select the schedule, and Yoshi would do the rest.
CAFU is a leading fuel delivery service provider in the UAE. It also offers various time-saving vehicle services, such as car wash, engine oil change, battery service, and tire change. The CAFU’s current annual revenue is $70.3M.
The purpose of the CAFU is to remove all the inconvenience you face daily. You have to register on the app, add a vehicle & pin a location and get service according to your schedule.
Lastly, it offers fuel delivery service anywhere or anytime for vehicles like a car, yachts, or boats as per the need.
It is a famous on-demand fuel delivery service provider in the USA. With EzFill, you don’t have to step out to fill the gas and keep rolling.
According to a release from GlobeNewswire, the market leader in the fuel delivery industry, EzFill, observed a 120% increase in revenue. It went from $1.86 Million to $4.09 Million in November 2022. It has sold more than 1 million gallons of fuel until now across the country.
EzFill is a time-saving and convenient fuel delivery app. To use this app, you have to create a profile, order fuel, decide the schedule, leave the door open, and EzFill professionals will fill up the tank. It provides same-day delivery and various essential notifications & reminders.
MyPetrolPump is now known as Fuelbuddy. It is a popular Bangalore-based service startup initiated in 2016. Fuelbuddy acquired it and now offers services across some cities in India.
It has delivered more than 3 million liters of fuel since its inception. Moreover, the company has got more than 2000 B2B customers over the years.
To order fuel from this app, you need to register, provide location details, enter quantity & time and make payment. The professionals will arrive at the location at the desired time and complete the task.
We hope this guide has given you a good idea of what it takes to start a successful fuel delivery business. So far, we have provided all the necessary information to start your own fuel delivery business, from challenges you might face to top leaders in this industry.
The future of the petroleum industry is on-demand fuel delivery. If you want growth and success in this industry, building a fuel delivery app/system is essential.
We are experts in developing fuel delivery apps/systems that help businesses stay competitive, expand their services, and increase revenue. So don’t hesitate to contact us if you wish to build a fuel delivery system/app.
We are a leading web & mobile app development company. We have years of experience in designing and delivering innovative systems.Hence, we will assist you in developing your fuel delivery system to support your on-demand fuel supply business.