E-mobility is not only changing how we get around, but also where we spend our time – especially at filling stations, which are on the verge of profound change.
What used to be a simple stop to refuel could develop into a multifunctional mobility hub in the future.
However, in Germany, a country that ass traditionally relies heavily on fossil fuels, this change is associated with considerable challenges.
In our second part of the interview, Matthias Trusheim, Growth Manager and expert for mobility and fintech, sheds light on the future of filling stations in the era of e-mobility and shows how they must transform into central hubs in a new, networked mobility system.
The future of e-mobility in Germany
Is the future of e-mobility in Germany at risk?
In fact, looking to this future poses a complex problem.
So let’s start briefly with the key elements of e-mobility and then look at the issue as a whole.
After all, the so-called “traffic turnaround” is not only dependent on energy in Germany, which is currently far too expensive.
No, it’s more down to a lack of innovation and networking with other sectors of the economy or industries, paralysing authorities, regulations and regulatory nonsense and, to make matters worse, the slowing pace of digitization, on which a change in mobility depends.
Instead of looking at the megatrends of our time and driving them forward as an asset in the EU, we are currently standing by, watching and hindering ourselves.
Slowing down the pace of digitization: What are the reasons for this?
I would like to give you a brief insight into this.
There is indeed an index, the Digital Economy and Society Index (DESI), whose results are unfortunately not very motivating.
The DESI is published by the European Commission and provides an overall assessment of the level of digitalization in European countries.
Germany has some catching up to do in the digital skills category.
It is ranked 23rd out of 28. Germany’s digital infrastructure also has shortcomings.
Although Germany previously invested a considerable budget in communications infrastructure, we are still only in the midfield in 13th place. Fiber optic expansion is making slow progress, 5G networks in rural areas are patchy and the introduction of 5G faces regulatory hurdles.
Although the coalition agreement promised ambitious plans for digitalization, the reality is different: According to the Federal Ministry of the Interior, for example, only around six percent of all available administrative services are available digitally across the board.
In many SMEs today, however, people still talk about “new media” or IT.
This clearly and transparently shows where we still stand here, unfortunately.
But let’s put it another way – these values are absolutely motivating!
After all, many companies are by no means content with the status quo, but are actively moving forward and acting as digital game changers.
The dynamic fintech and payment market is a very good example of this and is leading the way in many areas despite the resistance described above.
Is e-mobility a new megatrend for you?
Yes, exactly.
Megatrends are the biggest drivers of change in the economy and society and are shaping our future – not just in the short term, but in the medium to long term.
Megatrends develop their dynamics over decades. We should therefore start here and network strategies and markets today in order to give e-mobility a boost – and dynamically position ourselves on the curve. With the energy transition, filling stations have to reinvent themselves and electrify the “fuel station” into a feel-good zone.
This comes at a price.
What impact will e-mobility have on filling stations as we know them?
If you recognize the new, additional touch points and offer really relevant services via them, charging becomes a minor matter and the stop becomes a “meaningful break”.
Retail is changing and with it the good old petrol station.
After all, they have long since become the extended arm of the retail trade, but are unfortunately still too rooted in the POS and full of interchangeable food retail products on the shelves.
The range is the same everywhere and without clear differentiation.
Where are the digital tools, added value and offers, where is the clear focus on change?
In recent years, the convenience and tech sectors have impressively underlined their relevance.
Now it is important to actively promote the future viability of filling stations with a clear focus on “e-mobility hubs”.
Refueling or charging is only secondary!
There is therefore a need to develop an even more relevant convenience business model, a new market place.
So, use the change for growth.
Are we facing the death of petrol stations in cities?
As already described, this traditional POS should be driven by curiosity, constantly reinventing itself and focusing on megatrends.
So, how is society changing, how are cities changing, how is mobility being used?
Cars are moving out of the cities.
Petrol stations, often built on urban land and provided by oil companies in return for a lease to supply the driving public, are having to reinvent themselves.
The death of petrol stations has long since begun.
Another generational change is therefore imminent for petrol stations.
Because the fact is that we are already moving away from the 5-day workplace towards the 3-day home office option.
Demographics and driver’s license ownership?
In Norway, 90% of all EV charging takes place at home or at work.
This makes it clear that the “convenience” offer at filling stations is of paramount importance in order to keep mobile customers coming to the filling station.
So how does the digital ecosystem “petrol station” and the changes in mobility react to the ever faster changing consumer demands for food, drink & shopping and digital rewards?
But let’s not talk about warm bockwurst, bags of potato chips, crates of water or filling material such as bread rolls that only look like them and taste like nothing.
To what extent will the filling station model change?
The options move between the dimensions of the energy system and the mobility system.
Fossil and post-fossil carriers (including batteries and hydrogen) on the one hand – and vehicle-based concepts and mobility services on the other.
Many service station operators will of course try to extend the current business model into the future for as long as possible, as their model is usually based on the sale of fossil fuels, high-margin offers for daily needs and car washing as an additional trigger.
The CEO of Aral (BP Group) even says that “60 percent of all customer contacts no longer have anything to do with fuel”.
However, if we look at their current range and low convenience focus, I doubt this figure.
However, Germany’s largest petrol station chain is aiming to build hundreds of fast charging stations (UFC) for electric cars in order to lead the redistributed business model into the future.
In addition to the oil companies, energy suppliers in particular are installing generally accessible charging points, including at supermarkets and hotels.
The Federal Network Agency recently counted almost 40,000 public charging points in Germany.
According to economists, such as the Leibniz Institute for Economic Research (RWI), the construction of charging stations and, in particular, fast-charging points helps to motivate potential customers to buy electric cars.
This is why the state not only promotes the purchase of vehicles, but also the development of the charging network.
It would be logical, economically and ecologically expedient, but the “traffic light” has suspended funding for the purchase of EVs.
I’d rather not comment on that.
Nevertheless, the filling station 2.0 will offer charging stations for EVs, primarily to extend their range.
That is why these filling stations and charging parks will not be located in city centers in the future, but primarily on the outskirts of cities and in rural areas.
Car sharing, rental cars or delivery fleets will then find their home here.
How do petrol stations need to change and adapt their offering in order to remain attractive to people?
Due to their good locations, they are upgraded to small supermarkets or even “transfer stations”.
In the middle of the city, where refueling no longer plays a major role, important social functions and communicative offers could be developed for the district.
Investments would then no longer be made in technical aspects, but in social and cultural aspects, in the ambience.
This could create cultural spaces that allow the city to breathe.
The current bike boom is also creating new markets.
Porsche is cooperating with the world’s largest bicycle manufacturer.
“Road Diet” is therefore a principle that urban players are increasingly relying on.
Urban road space for cars is being proactively reduced and new public spaces are being created for sustainable uses and active forms of mobility, such as cycling.
Petrol stations = mobility hubs?
So petrol stations are turning into mobility hubs?
Yes, because they have the potential to drive forward the electrification of urban mobility.
Mobility centers that offer co-working space and much more are conceivable.
As with E.ON-Drive, new architectures and spaces will emerge in the future that offer far more than just mobility.
Or that EV companies – i.e. former automotive companies – offer batteries there for exchange or provide access to sharing, rental and subscription models (see FINN) and special public transport offers take us there.
Mobility therefore also means smart, comfortable travel.
This requires all mobility partners to work together.
Many concepts already exist, but a good business case is always characterized by a predictable ROI strategy and comprehensible timing.
And this is where things become difficult due to the brakes already described.
But at the moment we go to fill up where it’s closest and where the price is best?
Today yes, but not tomorrow.
The competition between gas station and gas station is over.
Petrol stations are already competing with bakeries, discounters, casual food restaurants and snack bars.
Hence the strategy of leaving the latter there.
Also as an omnichannel POS for the storage and collection of digitally ordered products.
Take advantage of the potential of e-mobility and put your company in the fast lane!
Be inspired by Matthias Trusheim’s findings and help shape the future of mobility.
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