Permanent expansion of working from home should significantly reduce miles driven ( unless it does the opposite), and while some gas stations generate revenue from car maintenance and smog tests, EVs need little of the former and none of the latter.
California and Washington state plan to end sales of new combustion engine cars by 20, respectively, and 12 states' governors have signed a letter urging President Biden to enact such a combustion ban nationwide. And while we think pure EVs are the threat to gas stations, hybrids also erode gas consumption. Volvo will be a pure electric brand by 2030, General Motors by 2035. Sales of electrified cars will exceed that of purely combustion vehicles by 2030, according to BCG. Boston Consulting Group calculates that between 25% and 80% of gas stations could be unprofitable by 2035. But the entire business starts to look a bit like a house of cards when you inventory the threats. While the gasoline brings you in, the C store makes the business really work. The National Association of Convenience Stores says 120,000 so-called "C stores" also sell fuel, accounting for the majority of gas stations. Mind you, there are 150,000 of these stations across the US today.
These gas stations won't have time travel at their disposal, but they will need to once again embrace the idea of "service stations" to ensure they remain relevant.
The future of gas stations will require the stations to look to the past.
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