What will happen to gas stations when all cars are electric?

Boston Consulting Group found that up to 80\% of gas stations could be unprofitable by 2035, as reported by CNET. However, the switch to electric cars doesn’t mean gas stations are doomed to be completely eliminated. Gas stations will need to offer other services that are useful for consumers.

Will electric cars completely replace gas?

According to the IEA report, if we don’t want to end up underwater, sales of new fossil fuel-burning passenger cars must end, to be replaced by EVs powered by renewable energy, by 2035.

Why electric cars should not replace gas cars?

The first major obstacle to replacing gas-powered cars with electric vehicles, known as EVs, is the cost. The upfront costs of electric vehicles have historically run higher than gas cars. New technologies are bringing the costs down to be more competitive, but the purchase price is still something to consider.

Do gas stations make money on gas?

Retailers Make Very Little Selling Gas Generally, the markup (or “margin”) on a gallon of gas is about 15 cents per gallon (gross profit before expenses). Factoring in expenses, which include rent, utilities, freight, labor and credit card fees, a retailer is left with about 2 cents per gallon in profit.

Does any Tesla use gas?

As such, Tesla vehicles do not use any gas, since their drive train relies solely on electric energy from the on-board battery pack. Using this electric-only approach, the Tesla Model S Long Range has an EPA-estimated range of 405 miles.

Is it worth owning a gas station?

Gas stations are a great business to franchise because the demand for fuel in America is constant and not going anywhere. Our country literally runs on gas. People need to drive to work and trucks need to carry goods across country. Gas stations are a $250 billion a year industry.

Are gas stations under pressure to stay relevant?

Combined with alternative fuels entering the market, gas stations are already under enormous pressure to stay relevant. About 3.2 million electric cars were on the roads in 2018, 751,510 of which drive in the US, according to the Centre for Solar Energy and Hydrogen Research Baden-Württemberg (ZSW).

How will the future of gas stations survive?

To survive, gas stations will probably have to offer more options. Not only may gas stations install charging stations, but also they may provide other types of fuel, like compressed natural gas or hydrogen. And as your car takes care of selecting the appropriate fuel type, maybe a drone will deliver your dry cleaning directly to your car.

Do electric vehicles pose a threat to service stations?

Vehicles that use an alternative fuel such as LPG or CNG still require refueling through a traditional fuel retail location—unlike EVs, which users may charge at home, at work, or in parking lots, and which therefore pose a substitution threat to service stations.

Will future gas stations have to run on EV chargers?

Wawa started collaborating with Tesla to place its Superchargers across from its gas pumps. Even oil companies, like BP, Repsol, and Shell, are adding EV chargers to their gas stations. As it turns out, perhaps future gas stations won’t have to rely on gas at all. This far-off future is already surfacing today.