The Internet is expected to make a major impact on fuel retailing, mainly through mobile systems.
Mobile Internet will play an increasingly important role in consumers’ lives. At present, mobile Internet use is severely limited by the relatively slow speeds attainable on current-generation mobile networks, resulting in the service being used by only 7% of European households by the end of 2001.
But as high-speed 3G networks come online, Datamonitor expects the number of households connecting to the web via a mobile device to exceed that of fixed-line homes by the end of 2004, with a 53% penetration compared to 48% with conventional access.
Innovations in telematics are driving the emergence of in-car Internet services. GM is leading the way with its OnStar service for US customers that has been running since 1996 – one in four new cars sold by GM now includes an access device. Ford, PSA, Mercedes-Benz, BMW, Volkswagen and others are developing their own systems, and Datamonitor expects that by 2005 the majority of new cars sold in Europe will include Internet access platforms.
In addition, MobileAria will be launching a system that allows PDA owners to access Internet services in-car, which can be installed on any dashboard. The market for telematics services could be worth up to $100 billion by 2010, with the bulk of the revenue coming from driver services such as navigation assistance, route planning and traffic information.
When on the move, people will mostly desire information that helps them find their way, and the most up-to-date information. Therefore, as mobile technology improves and proliferates, customers will most appreciate time- and location-sensitive applications. The most basic service that fuel retailers can provide is station locating, but there is much more room for exploitation of this platform.
Revenue creation from the provision of services such as route planners, traffic information, accommodation and restaurant reservations is a lucrative possibility. A strong offer of WAP services will also encourage customers to use the same provider when searching for a service station.
