Nov 21, 2018

The future of gas stations could be at risk

Illustration: Rebecca Zisser/Axios

As more electric and autonomous vehicles take to the streets, consumers may soon be able to skip the mundane task of stopping for gas. The disruption of other types of retail, like big department stores, suggests this transition could push the multi-billion-dollar market of gas stations and convenience stores toward collapse.

The big picture: Roughly 150,000 stores sell 80% of the fuel consumed in the United States, as well as $200 billion worth of food and merchandise, according to the National Association of Convenience Stores. Yet most stores have invested little in alternative methods to deliver goods or fuel to their customers, especially as cars shift from gas to electricity or even hydrogen fuel cells.

Where it stands: The grocery business is already preparing for automated and autonomous vehicles, with Kroger, Walmart, Whole Foods and others experimenting with new delivery options. But only the biggest gas stations and convenience stores are getting on board.

  • In partnership with 7-Eleven, Toyota is adapting its self-driving platform as a foundation for mobile stores that can deliver goods autonomously.
  • Shell has piloted a fuel-delivery service that refills cars while passengers are at home, at the office or around town. If F-16s can be refueled mid-air, we ought to be able to adapt this technology to vehicles on the road.

The bottom line: Technological shifts, especially the rise of e-commerce, have driven many large brick-and-mortar retailers out of business. Unless they're able to adapt, gas stations and convenience stores — mostly run by small business owners — could be left in the same position by autonomous and electric vehicles.

Karthik Kannan is the Thomas Howatt Chaired Professor in Management at Purdue University and director of the Business Information and Analytics Center.

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Coronavirus dashboard

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  1. Global: Total confirmed cases as of 1 a.m. ET: 664,695 — Total deaths: 30,847 — Total recoveries: 140,156.
  2. U.S.: Leads the world in cases. Total confirmed cases as of 1 a.m. ET: 124,464 — Total deaths: 2,191 — Total recoveries: 1,095.
  3. Federal government latest: President Trump announces new travel advisories for New York, New Jersey and Connecticut, but rules out quarantine enforcement. Per the CDC, residents of those states must now "refrain from non-essential domestic travel for 14 days," with the exception of critical infrastructure industry workers.
  4. State updates: Alaska is latest state to issue a stay-at-home order — New York is trying to nearly triple its hospital capacity in less than a month and has moved its presidential primary to June 23. Some Midwestern swing voters who backed Trump's handling of the virus less than two weeks ago are balking at his call for the U.S. to be "opened up" by Easter.
  5. World updates: In Spain, over 1,400 people were confirmed dead between Thursday to Saturday.
  6. 🚀 Space updates: OneWeb filed for bankruptcy amid the novel coronavirus pandemic.
  7. Hollywood: Tom Hanks and Rita Wilson have returned to U.S. after being treated for coronavirus.
  8. What should I do? Answers about the virus from Axios expertsWhat to know about social distancingQ&A: Minimizing your coronavirus risk
  9. Other resources: CDC on how to avoid the virus, what to do if you get it.

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Coronavirus updates: Global death toll tops 30,000

Data: The Center for Systems Science and Engineering at Johns Hopkins, the CDC, and China's Health Ministry. Note: China numbers are for the mainland only and U.S. numbers include repatriated citizens and confirmed plus presumptive cases from the CDC

The novel coronavirus has now killed more than 30,000 people around the world — with Italy reporting over 10,000 deaths, per Johns Hopkins data.

The big picture: The number of deaths from COVID-19 in the U.S. surpassed 2,000 on Saturday. The United States leads the world in confirmed coronavirus infections — more than 124,000 by late Saturday. The number of those recovered from the virus in the U.S. passed the 1,000-mark on Saturday evening.

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President Trump on the White House grounds on Saturdya. Photo: Sarah Silbiger/Getty Images

President Trump tweeted Saturday night that he's decided not to introduce quarantine enforcement measures fo New York, New Jersey and parts of Connecticut, but a "strong" travel advisory will be issued for those states. The CDC later announced domestic travel restrictions for the states.

Why it matters: Trump said hours earlier he was considering quarantine measures to combat the rise in novel coronavirus cases. But he received pushback, notably from New York Gov. Andrew Cuomo (D), who told CNN such a measure would cause "chaos." "This would be a federal declaration of war on states," Cuomo added.

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