Ryder launches mobile fueling network

Rental and leasing giant Ryder System Inc. has launched a refueling service it said allows smaller fleets to reduce their costs by buying diesel at the same wholesale price as Ryder, and to leverage the scale of the company's large fuel-distribution network.

Under the service, fuel distributors and jobbers that have local distribution capabilities will fuel vehicles at the customer's yard. Customers can order the service through their smartphones, Ryder said.

The service will cover the U.S. and Canada, and will rely on third parties that buy directly from Ryder. The fuel price would vary, but would be cheaper than if the fleet fueled up on its own at the pumps, Miami-based Ryder said.

The average tanker will carry 5,000 gallons of fuel, enough to service a fleet of 100 vehicles with 50 gallons apiece, Ryder said. The company said it dispenses more than 275 million gallons to 435 stations across the U.S. and Canada each year.

Ryder expects to benefit through increased fuel revenue, and by having the opportunity to provide related services to the customer.

The specific price of the delivered fuel will vary with market conditions, as well as proximity, fleet count, and frequency of service, Scott Perry, chief technology and procurement officer for Ryder's Fleet Management Solutions division, said in an email.

"The benefit comes from matching the capabilities from a very decentralized distributor network to the needs of very decentralized and fragmented fleet operations," Perry said. "By serving as the conduit for matching those needs and capabilities on an aggregated basis, we can create value for everyone in the process."

Commercial gas stations must satisfy strong regulations governing safety and pollution. Ryder said it will apply the same monitoring and environmental protocols to distributors in the new mobile network that the company currently applies to its existing fuel stations, which must meet strong safety and air-quality regulations.

The offering is Ryder's latest effort to generate revenue by selling services as well as leasing trucks. In May, the company began selling "preventive" and "on-demand" maintenance services to accompany the all-in maintenance offered under its full-service leasing program.