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Right, but that's still the point: gas stations have mostly already stopped existing that don't have a nearby high margin draw. At least in my part of the US mo
by WorldMaker 1y ago
Right, but that's still the point: gas stations have mostly already stopped existing that don't have a nearby high margin draw. At least in my part of the US most gas stations are "clubs" designed to further encourage regular spending on high margin stuff. (Grocery rewards points, car wash memberships, things like that.)
EVs will disrupt that "high volume" part of it. How long will the "clubs" keep the expensive equipment maintained and running as volume shifts? What price point is too low margin? What price point is too high that volume further drops? (How likely is that to spiral?)
It's not entirely just theoretical, the 1970s showed things happen to gas stations quickly when prices change. We've already seen the death of the "non-club" gas station accelerate in the last three decades, even as the "clubs" build more than ever, further out from city cores, further out into the suburbs and the exurbs. The urban gas station is disappearing/has been disappearing for decades. Gas stations are no longer a foundational part of the urban experience, they are moving out to the edges.
As demand changes from EVs, I expect things to get weird and possibly quickly, because the economics model of gas has always been weird but has been put up with because it is high volume enough. When the high volume is disrupted, what do you expect happens?