Using fuel delivery as a Trojan horse into car owners' hearts & wallets

Dubai is the City of the Future. In addition to its out-of-this-world architectural marvels, specific experiences capture the essence of this forward-looking Emirate. CAFU is one of them.

The fuel delivery and vehicle services app is the new economy's take on disrupting the petrol/service station.

A petrol station (gas station) isn't a destination in itself. It's a stop you make out of necessity that interrupts the journey. Despite decades-long efforts to enhance the backcourt with F&B outlets and convenience stores, no driver is making it a point to visit the petrol station without the need to refuel.

CAFU provides a compelling alternative. By downloading their app and registering their vehicle, users could schedule a refill at any place and any time. As long as the car is accessible with the fuel cap unlocked, the entire experience is designed to be click-and-forget. While users go about their day, the unmistakable Tiffany's teal-colored CAFU vehicle essentially brings the petrol station to you.

Initially, the service followed the food delivery app business model and charged a delivery fee. In 2020, however, CAFU pivoted to a no-delivery-fee business model.

Assuming CAFU isn't following the food delivery apps' unprofitable, grow-at-all costs playbook, the decision to go without delivery fees may be a Trojan horse that leads them to own all things associated with routine car care. 

While other vehicle services may have been less capital intensive and easier to launch, CAFU started with fuel delivery. With only the petrol stations as competition, they could enjoy a significant first-mover advantage and buildup their user base.

Like many pioneering brands before it, CAFU normalized a new consumer behavior.  The app made users comfortable with having someone come to their homes and service their vehicles without them standing watch. It also made users open to on-demand services for routine car maintenance.

Routine car maintenance encompasses standard services that require low technical expertise and doesn't involve an accident or a failure of some kind. Everyone is familiar with refueling their cars. It's a predictable action with minimal variables. The chance of something going wrong is very low. The low risk makes it easier for new users to try out the service.

Once users experience the frictionless convenience of CAFU's fuel delivery, considering other routine car maintenance services becomes a natural extension.

CAFU essentially hooks users with refueling and works to increase the average spend per customer through car washes, battery, tire and engine oil change services.

There are competitors in the market offering on-demand routine maintenance services, but CAFU has an advantage as the only fuel-delivery service. And as long as they can keep their pricing competitive, they stand to benefit from consumers' tendencies to aggregate like-services onto one platform.

The full extent of CAFU's growth strategy will likely build around progressively owning, strengthening its associations with convenience, automobile and routine. 

Annual maintenance checkups could add another wrinkle and extend users' reliance on the app a step further. Following the convenience-driven approach, CAFU could arrange to tow the vehicle for free to their service station to conduct an annual maintenance inspection. Vehicles outside of the dealer warranty and service contracts would be the primary addressable market.

Suppose the brand continues to deliver on its value proposition. In that case, it can potentially challenge and disrupt UAE's $14.2 billion used-car market by leveraging the data and customer base it already posses. Instead of replicating existing business models, CAFU could provide a bespoke vehicle matching service, including inspection and delivery.

Before you know it, CAFU will have evolved into a genuine SuperApp for car services.  

Thinking in the long-term, CAFU will need to consider the transition from fossil fuels into renewables. While a complete shift to electric vehicles may be years away, it will be necessary to figure out what role they will play in the new energy environment.