U.S. Gas Station Industry

• U.S. gas stations generated $109 billion revenue in 2019, excluding convenience stores, a fall from the previous year.
• The revenue of gas stations in the U.S. has been very volatile over the last 5 years.
• They have risen as the employment rate has gone up and more people drove to work, but drops in the oil price have reduced revenue.
• Stronger retail and manufacturing sectors also impact gas stations positively by increasing the demand for diesel.
• The number of gas station businesses has also fallen to 21,103. 
• The industry's growth is down 3.7% between 2014 and 2019. 
• The two top gas station companies in the U.S. by market share are Shell and Marathon.

Threats and Opportunities

• As retail gas price is directly related to oil prices, a substantial drop in the later can negatively affect revenue. 

• Americans are driving more miles with their vehicles, which represents an opportunity for gas stations.

• However, new generations of vehicles that are more fuel efficient can reduce the profitability of gas stations.
• The biggest threat facing the U.S. gas station industry is the advent of electric vehicles (EVs) and hybrid electric vehicles (HEVs).

Changes in the Space

• The industry is about to be transformed as oil and gas prices are highly volatile, and EVs and EHVs are becoming more popular, reducing U.S. gas demand by 5% to 20% by 2035.
• The U.S. gas station industry will have to move from a vehicle-centric model to a customer-centric model to survive.
• This means that companies in this space will have to use digital tools to extend their relationship with customers beyond infrequent stops at the station.
• This will imply a transformation of their stations, networks, and assets. 
• Gas station companies will need to offer other services beyond gasoline to attract consumers.
• In the U.S., some companies have started experimenting with Amazon lockers in their gas stations, an expansion of their food offerings, and electric vehicles charging hook-ups.

• Some stations have completely converted from gas to charging EVs.