Across the globe, UAE is known as the most innovative nation, and its visionary leader aiming to stimulate technology innovations in various industry verticals. In the attempt of making Dubai a smart city, the leading players have redefined the whole refueling process and made it simple, faster, and convenient.
Its impact observed in the UAE during the corona outbreak wherein the life of the people was easy, even when they are not leaving the house. All thanks to the mobile apps.
CAFU- the on-demand fuel delivery app was the one, which helped the people to get the tanks refilled at the time and place they want. Going beyond, CAFU has removed the delivery charges during pandemic times to encourage the people to make a transition to the digital refueling services. The long-term strategic decision surely helps the company in the post-corona era in the form of an increased user base and strengthened trust.
Well, it’s a case of what would happen in the new normal. Let’s discuss how CAFU began its operations and quickly managed to capture a large market share.
Let’s dive in!
Meet fuel delivery the gap
The company has analyzed that drivers or individuals in the UAE spend at least 10-30 mins at the petrol station to get the tanks refilled. It means they are wasting nearly 9-27 hours a year that gets saved when they adopt the on-demand services. The elimination of delivery charges put 1,000 Dirham back in the pocket. See how?
With the CAFU launch, the users need to download the mobile app for iOS or Android devices, make registration and enter the car and payment details. When they require refueling the car tanks, they need to enter the location, and the refueling trucks (Super 98 and Special 95) arrive at the scheduled time for refueling.
The customers pay no extra amount for the fuel delivery at the doorstep. The price is sometimes lesser than what the customers pay at the fuel stations. That’s good news for the customers.
But how the CAFU makes bundles?
The company is in a profitable stage with an intelligent pricing framework. The company charges 18 AED per order or 26 AED for the monthly subscription that includes unlimited orders.
According to research, in the 19 million cars on the GCC roads, the UAE holds the second position with an 18.5% share, that’s around 3.53 million cars.
The latest report states that the number of vehicles in Dubai has increased to 1.83 million, and driving licenses have increased to 2.5 million, which indicates a car boom and an opportunity for the fuel delivery service providers.
When an average revenue from every Cafu customer is computed, it’s equivalent to 22 AED (18+26/2= 22 AED). The annual revenues go up to around 900 million AED (22 AED * 12 months * 3.53 million).
It’s just the earnings from UAE. MENA region, Jordan, Egypt, and Oman are not yet included in the count. It means the global revenue will be in billions. That’s impressive!
How CAFU seized an edge in the crowded market?
There are other fuel delivery service providers that have emerged in the market. The company is offering value-added services to stay ahead of the game. Some of the initiatives include-
- Making cities smarter with the elimination of physical fuel stations.
- The smart meters and fuel pumps ensure that the right amount of fuel gets filled.
- The probability of fuel spillage gets diminished.
- With ESME-certified petrol usage, quality and safety are ensured.
- The customers get served right at the moment they need car tanks to refilled, irrespective of time and place.
That’s great! But, still, not enough to grab the users’ attention, hold them, and make them keep using the services when they need car refueling. It requires a strategic plan with the right mix of technology, tools, and people. CAFU did the same.
The marketing strategy
It starts with brand awareness for which CAFU employed intelligent tricks including-
- Under offline advertising, the huge billboards on Sheikh Zayed Road and in Cairo are placed to make the brand felt noticed.
- The special CAFU van is designed for fuel delivery trucks.
- Made the first refueling service free to entice the first-time customers to give a try.
- Spending huge Dirhams on corporate social responsibilities to spread social awareness.
When the customers have experienced the car refueling service once, then they are engaged with unique tactics to earn loyalty. They are:
- The influencer campaign with Kris Fade is a great instance of making the customers engage with the brand.
- The giveaway campaigns like- “Night Owl” award and other referral campaigns are run to intrigue the users with free perks and improve retention rates.
- They have tried the hands with Google ads and retargeting campaigns too.
What’s more? Diversified portfolio
The company is not just investing or playing with car refueling services in the UAE. Instead, the company prefers not putting all the eggs in one basket and started serving other segments too that include- motorcycles, corporate fleets, boats, and vehicle maintenance services. Additionally, the company is investing in AI and ML technology to improve the product and enhance user experience at every step of the way.
The increased market segments and technological investment have helped the company to play catch up with the big fishes in the pond and drive innovation.
It’s appreciable! But, not enough unless the company has not created KPIs to measure the performance and success because high ROI or positive feedback doesn’t showcase the things hidden in plain sight.
The key metrics that CAFU leverages to check the value-added services they are offering.
- The number of app downloads and the uninstallation rate.
- The number of monthly active users.
- The number of orders placed by every customer and their frequency.
- The number of orders rescheduled or canceled.
- The amount of time that truck takes to complete the fuel delivery order.
- The amount of time invested in completing every order from request initiation to the final delivery.
The on-demand solutions have aptly addressed the instant gratification need of the people. But, no one has imagined that the combustible commodity will also get available to them anytime, anywhere.
CAFU in the UAE is the best instance of it. The company has captured enough market share while adhering to all the safety and regulatory requirements set by the nation’s government. The right mix of technology, tools, and tactics has helped the company to strengthen the foothold, win the customers’ trust, and upsurge the revenue by manifolds.
What’s your take? Are you also looking to launch a successful fuel delivery business in the UAE? If so, congrats. The on-demand space is not fully explored, and there is a lot of room for improvement. Conduct research for the location where you are aiming to start the on-demand fuel delivery service and the resources’ availability that allows you to make your dream come true.
In the event you are unsure regarding some aspects, feel free to connect with our business consultants as their market experience and expertise would help you in every way. All the best!