Yoshi (YC S16) launches “set it and forget it” vehicle re-fueling service in SF
techcrunch.com
techcrunch.com
I'm also skeptical of the long-term prospects of this business model based on the rise of transportation-as-a-service and the inevitable demise of gasoline in favor of EV's. Both of those factors will be especially pronounced in the Bay Area, where this startup hopes to gain a foothold.
Honestly, I wonder why they didn't launch in Chicago or Boston in the winter when weather would make people not want to bother going outside.
What is "regulation arbitrage?"
In this case, both taxis and limo/livery services[2] provide the same good -- "rides to somewhere" -- but taxis are more regulated in terms of rate, driver training, equipment, and how many can be active (medallion limits). Limo/livery services (or something passed off as one), by contrast, are less regulated, and what regulations they have aren't as closely monitored because (until recently) no one cared.
The analogy to arbitrage is that it's a case of same good, but different prices on different "markets". (Whether you market it as a "livery" or "taxi" service.)
Side note: IMHO, such arbitrage can't fully account for the success of Uber/Lyft, which have actually obeyed the major "no street hails" rule. They provided a better service (reliability and seeing when your ride is coming), squeezed out enormous efficiencies from harnessing IT, and solved major public goods/incentive problems that the regs were failing at -- how to fairly allocate the undesirable fares and get people to provide feedback on bad drivers.
[1] http://www.investopedia.com/terms/r/regulatory-arbitrage.asp
[2] The legal difference between the two is that a taxi can do street hails -- on-the-spot arrangements found by line of sight -- while limo/livery services must be pre-arranged through some booking service that logs the specific driver/vehicle assigned to chauffeur a specific person + guests to another place.
OTOH, I don't know if they use top tier fuels with whatever detergent packages or if it's Arco-quality gas, or what.
Now that I live in CA, everyone does 10% ethanol anyway. More and more it's hard to find non-ethanol gas anywhere.
Supposedly the top tier brands use 'better' detergents, but I'd say the differences in brands are smaller than ever.
This might be more useful if gas stations begin to fold because of electric cars.
Down the track, they may become distribution/pick-up hubs. Most of them are very well located.
Would I pay $15 a month for this even though my normal routine doesn't suck? Maybe. But what about the actual gas cost? That's more important than the $15 subscription fee if the spread is large enough and I'm guessing it is since they have to pay for the drivers, carry some kind of insurance I presume, and whatever other costs are involved.
Then maybe the solution is not yet-another-subscription, but an electric car. I mean if it's that big a deal to you, such that you would describe it as "a game changer".
Personally, meh, it's an additional five minutes every couple of weeks. Since the only gas vehicle I regularly drive is a motorcycle, I don't even have to "exit" my vehicle, just zip the card through the reader, shove nozzle in tank.
*EDIT: off topic, Always Sunny In Philadelphia solution to this problem.
Not to mention many people like to stop for gas for an excuse to grab a snack or drink.
IIRC they're also pushing for traction in Tennessee where one of the founders is originally from, so they've split their eggs into at least 2 markedly different baskets.
I probably average 2 trips to the gas station a month and I have a below average commute.
Each trip takes me 10 mins out of my way + 10 mins of fueling depending on if there's a line or not.
And it's always before work (I'm in a rush) or after work (want to get home to family).
Paying a startup $15/mo to reclaim even 40 mins a month of my personal time is a no brainer.
Just asking, how do you wish to spend those 40 mins you are likely to save per month? Which you will likely get in installments of 20 minutes per 15 days(avg 1 minute/day).
is French for the demand is inelastic
The only two situations I can imagine is if you are poor and work more than one job and have to often rush. Which in case it doesn't make sense to pay more for something like this. Or if your time is worth in thousands of dollars an hour/minutes. Which in case you anyway have drivers and servants to do that for you.
Or may be if you are meeting your kids once in a few days/weeks and you just can't wait anymore to meet them not even a few minutes.
Either way the service requires you let them know a few days in advance and keep your vehicle unused for a good few hours. If you need to plan out things like filling gas a few days in advance, I'm very sure you wouldn't end up surprised not having gas in the car in the first place.
Its not like they track your car through GPS and show up at the exact place where you are empty.
At a minimum, I should be able to open my Yoshi app and say "My car will be [here] for the next 4 hours. Make sure it gets full".
"Rather than delivering “on-demand,” Yoshi users schedule refueling one time, typically at a place of work where they park for hours during the day without needing their vehicle."
and
"This “set it and forget it” approach allows Yoshi to optimize their delivery routes, explains CEO and co-founder Nick Alexander."
I don't think it works like Uber, where you can order for something and get it on demand. You need to tell them where you will be a few days in advance for them to chart our their route to finally reach you. You need to be aware/anticipate that you will run out of gas a few days before and then schedule the refill and keep your car unused for a good few hours.
That makes much sense for the 1.0 version, but I have to think my GPS vision is on the 2.0 roadmap.
I also don't get these 40 minute estimates. On one of my little motorbikes I used to fuel up and back on the road in no more than 3 minutes, and my truck doesn't take more than 5-8.
First world problems for sure, but I'd happily pay to be rid of that inconvenience. And while they're at it, I'd pay an extra $10 for them to do a quick wash of my car once a month.
Sure, makes perfect sense for anything that goes beyond >1hr a day.
But lets do the math here. Lets say some one charge $15-$20 per hour do your chores(Going by the minimum+ wage). For two hours you are now looking at $450-$600/month expenses for that. If you can afford that and are willing to spend that kind of money, then it makes perfect sense.
To be fair, this is probably a trade-off people in SF are already making. I know I am in NYC - if I was willing to spend an extra hour/day commuting (and that's only weekday, of course), I could easily save $500/month or more on rent.
Say if you started when you were 21. By the time you are 46- just the savings would be $180,000. Progressively invest that in a good fund. That could mean a home right there or a 401k equivalent, Just on your travel expenses. To me, that's a decent nest egg.
I don't believe the parent poster was serious when he said he'd like to spend it all because he refused to believe he would be alive in a few decades. In most cases the person would generally be alive, live long, and be poor in old age. What follows next is blaming government, youngsters, immigrants, bankers and what not for your predicament while very clearly it was your choices at work all the time.
Now don't tell me spending extra time on commute is hard. Obviously it is, you don't get to an extra 401k by 46 by walking in the park.
25 years * 5 days a week * 48 working weeks a year = 6000 hours spent commuting.
Assuming 8 hours sleeping and 8 hours working, those 6k translate to 375 days worth of waking hours and 750 days worth of non-work hours.
Alternatively, you could devote those 6K hours entirely to working and get the equivalent of 3.125 extra working years over that time (6000 / (48 * 8 * 5) = 3.125), which should exceed a nominal $180K pretty easily.
are there no hand car washes in st. louis? a full service carwash saves about 40 minutes of labor that you can use to catch up on work or other activities, and costs about 15 bucks.
and how about a cheap lunch at the diner for 1 or 2? wouldn't that be about $15? and saves you about 40 minutes of prep, cook, and clean?
$15 in a taxi cab or uber would save you about 40 minutes of walking.
And yeah people do part with $15 on known entities in brainless ways. This is a new behavior though. This gas refueling scheme ain't gonna make sense to the vast majority of people, hence once again cue the Dana Carvey George Bush skit...."Not gonna do it."
Much fewer people will pay $15 to avoid 40 minutes of driving or waiting.
I don't, which is why I'm launching a butt-scratching on-demand service. You'll never have to stop what you're doing to scratch your butt again.
In seriousness, time is the most precious resource we have. Still, I wonder if it's possible to overestimate its value.
My own 2 cents on this is not that the value of the time becomes over estimated but that people fail to extract the value of the time they "saved" by paying to have a service provided. I pay somebody to mow my lawn every week, if I spend that time hacking on a side project or being with my family then I can honestly say my time is indeed valuable and was well spent; but if I spend that time just screwing around on HN or Reddit, then I would say I wasn't honest about the value of my time and accept the fact that I paid for a service just because I'm lazy.
Gas is merely a way to start the relationship between the car and the owner.
car servicing is a massive low hanging fruit after the gas one. Presently my car is over a month due for servicing, I'll happily pay 15% more to get someone come do it where I parked it.
My suggestion to the founders would be to test switching between "refuelling" tagline and "serving where you are" and see which converts better. I believe too many people who need the second will dismiss you on seeing the mundane first.
Best of luck!
I've had no trouble with YourMechanic.
I've never used Yoshi...but I have a gas station at the end of my block and I talk to the owner every so often so I'd feel weird cutting him off like that. xD
I'd totally pay a bit extra to have someone pickup my car from the work parking lot, take it for an oil change and whatever other squawks I've identified, etc, and return it.
Of course, the downside is that most cars don't get oil changes very often (compared to fueling), so they would need a LOT of customers to make this work.
I have a friend that works in the industry. I'll bring this up to him and see what he says.
Quick-service car maintenance is profitable because they can be efficient.
They have a guy at Jiffy Lube "below deck" so the car doesn't need to be jacked, lifted, or crawled under to start draining the oil.
The second you lose "home court" you lose any procedural efficiency your business has.
I have enough trouble crawling under my car in my own driveway, I can't imagine having to work on a car in a corporate parking lot, surrounded by others.
It's also messy, so I'd imagine it's pretty hard to do anything while making sure the cars parked half a foot away, are clean and untouched. Glass replacement at least is relatively self contained.
The way it was written in the article suggests that, but perhaps they are just giving users some proprietary hardware to put on the car.
I love this quote so much.
Said the man to his cellmate.
It isn't something we do a lot of but sometimes when we are on our way to camping our motor home is running its fridge on propane. There is an open flame somewhere that is feeding the heat pump. We turn it off when we go into a gas station but if someone parked next to us, they would probably not know that it wouldn't be a good place to have their car refueled. Hard to know what is going on exactly in your environment.
> "We haven't talked to them. I don't know about that. It’s news to me"
> "You can never ask for permission because no one will give it"
The status quo is that every half-drunk, chain smoking, Joe Regular is allowed to fuel up his tank unsupervised. This is unlikely to be any more dangerous.
> "You can never ask for permission because no one will give it"
This is the unfortunate truth.
Why? Even if truck driving jobs tend to be contract positions, this isn't any driving job. And it certainly isn't uber.
Their drivers need a commercial drivers license with a hazmat endorsement.[1] There's also a TSA background check before you get to drive a gasoline tanker, even a small one.
Why doesn't the fueling vehicle have a full-sized hazmat diamond, like every other fuel truck in the US?
[1] https://www.dmv.ca.gov/portal/dmv/detail/pubs/cdl_htm/sec9
HN generally assumes such regulations are merely the work of corrupt politicians in the corporate pockets trying to slow disruption.
Having a service like this would save me some amount of time, I suspect that if I significantly relaxed my fueling station choices, it would cost me much less than $15/mo, and the inconvenience of filling up would be diminished nearly to zero. There are stations very near where I live, so route deviations would disappear, and the lines are never very long.
Basically, I think part of the allure of a service like Yoshi is it removes the decision paralysis that results from having many different gas stations available, and having to choose when/where to fill up. Ultimately not a game-changer for me, but I appreciate that it makes me consider alternatives!
You're still paying separately for the fuel. Perhaps I'm misunderstanding your comment.
Very sad to see "must be a licensed driver to pump gas" signs everywhere these days :(
Darn customers, always with the fire.
What a good way of summing up the fashion of the times.
Very curious how this works.
2. Use something like GasTapper (literally first google hit) on apparently uncrackable gas tanks.
3. Profit?
Profit? Really?
Is the name "Yoshi" not as protected for whatever reason (more common name/word/etc.), or is this just a case where the company is in a different industry therefore Nintendo's protection doesn't apply, or is this a risky thing to do? I'm just genuinely curious about how this stuff works, I have no stake in any of it. It's a great name and I wish the startup the best.
But seriously, the remarkable part of your comment is your HR department. If someone in HR hears a valid complaint about fairness and then tells you to read the "don't be a whiny bitch" parable in the Bible, you should be able to get away with murder at that company. Why not clock-in a 4:50PM and call it a day after 10 minutes per said parable.
You're wanting a full service mechanic to come out to you. That's not what this service is (nor do I think you can commercially change oil and other fluids in random parking lots).
Just because someone has an idea doesn't make it a sound idea, nor legal. Changing vehicle fluids commercially in random parking lots is not allowed in a lot of places, for fairly obvious reasons.
And frankly, the company this thread is about even acknowledges the legality of what they are doing may be shaky. Driving around town with hundreds of gallons of fuel is likely to make certain regulatory bodies unhappy.
In another article, the San Franciso fire department stated fuel delivery services were not permitted[1].
[1] http://www.bloomberg.com/news/articles/2016-05-02/gas-delive...
If you disagree, and it sounds like you do, there are plenty of other sites.
YourMechanic seems to offer that: https://www.yourmechanic.com/services/change-oil-and-filter
Don't want to share too much about oil changes yet, as we're still trying to figure out a lot of the details ourselves and are only testing this in a very limit scope right now.
Mid-grade (89) is just a mix of the two - it shouldn't be hard to implement.
That's the perception (and they are happy for you to think that), but I don't believe it's actually true.
And in any case, if it is true, a mix would simply have a lower level of additives for midgrade and that seems right to me.
> although there are older gas stations and cheaper stations which mix high and low on-site at the pump for medium.
I'm almost 100% certain that almost all gas stations have just two storage tanks and the pump mixes them.
See: https://blog.gasbuddy.com/posts/Gasoline-pumping-from-the-st...
http://hyperbear.blogspot.com/2006/05/dirty-little-secret-ab...
Full disclosure: I don't drive that often, bike to work and probably fill my gas tank once a month or less
USDOT 2724248
Yoshi Inc., Sunnyvale, CA
Types Transported:
- Liquids and Gases
- Haz-mats
[1] http://transportation-services.findthecompany.com/l/3180484/...
Just a heads up, I noticed a typo on the membership page: "No need to even look at the gas gauage anymore"
Are you thinking about that option?
[0] http://www.petersonfuel.com/
[2] https://s-media-cache-ak0.pinimg.com/736x/61/f8/9a/61f89a5b5...
With Zipcar you must return the tank at least 1/3rd (maybe it's 1/4th) full, but there is a gas card in the visor. They're apparently using some kind of fleet management system, because the gas pump itself prompts you for the odometer value and your "driver ID" number (on your Zipcard) before fueling. Same interface at competing gas stations, so it's apparently a standard thing.
It's a bit unpleasant because you can't cut the reservation time too close to your needs - need to allow extra time to go to a gas station and back.
For some reason I thought at least Zipcar augmented customer refueling with trucks that refueled the fleet.
(1) http://jamesheatingoil.net/Members/1/galleries/Oil_Truck/oil...
Edit: Also and aside... the last driver I saw hop out and fill a tank from one of these trucks chain smoked during the entire fill. ?!!!
That said, gasoline is a LOT more flammable than fuel oil or diesel. The later two burn, while gasoline vapors almost explode when ignited.
I don't get the money argument at all. Negotiate yourself a $15/month raise, if you feel that bad about it. And yes, no shit, in some places in the world (like back home for me) this won't make sense -- so what?
The one thing I'd want to have is some kind of ceiling on the gas price. I checked this morning and the prices seemed quite good, but what guarantee do I have that they won't randomly jack up the price when I'm not looking?
So does this work similarly to the gym business model (i.e. over-subscribe the service with the assumption that some portion of subscribers won't use it very often and will subsidize the heavy users)? The requirement to plan ahead instead of offering on-demand delivery seems like it might encourage that dynamic ("Crap, I'm nearly out of gas and forgot to put in my Yoshi order. I'll just fill it myself this time").
What happens the first time something catches on fire? Will they fill up inside of a parking garage? What about a home garage?
How do leaks get handled, small and large?
There are a lot of details here, but the "tldr" is that transporting gasoline and refueling cars requires caution, but it's a solved problem.
http://law.justia.com/codes/california/2015/code-hsc/divisio...
Yoshi is a really cool name :)
However, the way that the service works now, it wouldn't save you anything in the average case. We come by and fill your car up regularly (usually once or twice a week) without you having to "order" when you need it. Unless you take a long trip and need a fill-up off-cycle, you shouldn't need to ever use the app to call for gas once you are setup.
If I could give the service a key to the car (and trust them to figure out when I needed service), it might be worth doing, but I am not a dedicated car commuter.
We are still in the beta stage though and learning a lot from customers.
As someone mentioned, fuel is just the gateway to get into car servicing market.
[1] http://www.popsci.com/article/cars/robotic-gas-pumps-are-com...
The answer to all questions is that random private individuals or groups do the tests. If it's a big enough concern among their customers, some of them will do it. Some customers at regular gas stations already do these tests on their own because not all gas stations are the same. (A few people even make their own gas.)
As the parent of a two-year-old, I can definitely see a need for this. It would be a great gift for new parents, for example. The price seems a tad high for me personally, but as can be seen by them already being profitable, clearly many people are willing to pay for it.
[0] http://www.bloomberg.com/news/articles/2016-05-02/gas-delive...
Is there a public analysis that we can view?
Edit: Really? Buried to the bottom for environmental concern questions? Is this another case of YCombinator being unable to adequately respond to critical questions?
This service is hauling around, presumably large amounts of, gasoline, likely using a hydro-carbon burning engine. Usually this gasoline is taken straight to large tanks where many vehicles may come to refill. With this service, much work must be done to move around the gasoline to the vehicles, wherever they might be.
I want to know how much carbon is released into the atmosphere by this service over (or under) the current alternative.
I want a pony. These numbers don't exist. Nobody computes them. If you want to try, knock yourself out.
Now remember that a car doesn't magically get gas from a gas station, it has to drive there, it has to drive back. If this service uses some algorithm to actually drive less to deliver gas than people would independently doing the same thing it could be carbon positive.
You'd have to run the numbers to find out.
It's a pretty insignificant concern, though, relative to the positives (time savings, convenience) and negatives (safety).
>It's a pretty insignificant concern, though, relative to the positives (time savings, convenience) and negatives (safety).
It seems pretty convenient that the only beneficiary is the person responsible for the negatives (which we will all suffer from).
A) It does not consider that we are building more cost effective alternative fuel delivery infrastructure that can help accelerate the adoption of alternative fuel vehicles other than electric such as the Toyota Mirai and Honda FCX Clarity.
B) Does not consider that efficient gasoline delivery can reduce carbon emissions and the number of polluting underground gas station tanks.
Can you please share your analysis of how much your company reduces carbon emissions?
I'd like to know what a glamorized fuel cell has to do with somehow circumventing the lock on many gas caps.
I imagine it's some sort of tool that somehow defeats the locks on such gas caps and flaps, which poses interesting questions about legality (as they acknowledge in the post). I certainly would not signup for a service that risks breaking or damaging my vehicle, nor am I about to hand over keys to my vehicle either.
How large of a market is there for this really? Frankly, is this a problem really needing solving? This company must charge a premium for the service, which makes your fillups cost more than if you just spent the 2 minutes it takes to pump your own gas.
Many gas flap locks seem to be simple solenoids, and it's often relatively simple to change the state of a solenoid using a powerful magnet. Certain low-end electronic-lock safes are susceptible to similar attacks (that's part of the reason why better electronic-lock safes use motor-driven bolts instead of solenoids).