Episode Overview
Mike Murphy, president of Ally Fuels, explains how fuel management is evolving from a pass-through cost into a revenue driver for rental companies. With 20 years in the fuel industry and 8 focused on equipment rental, he breaks down the three phases of fuel management, from referring customers to vendors, to manual billing, to fully integrated software that automates and optimizes operations. He shares why independents have an opportunity to move faster than nationals and turn fuel into a true competitive advantage.
Timestamps:
- 00:00 – Introduction to Mike Murphy, president of Ally Fuels, and how fuel can become a revenue driver for independents
- 06:48 – The first phase of fuel management: rental companies handing customers a vendor’s business card
- 08:58 – The second phase: vendors billing the rental company, which then bills the customer to create revenue
- 11:10 – Realizing the need for better technology as other parts of the job moved to mobile while fuel stayed stuck in spreadsheets
- 13:13 – The third phase: software-driven fuel management that automates and streamlines processes
- 16:00 – Why integration matters, with only 16% of rental companies using fully connected systems
- 27:28 – How Ally Fuels works: portal upload, delivery, and markup opportunities for rental companies
- 29:41 – On-demand fuel service as a customer experience upgrade—an “Uber for fuel” approach
- 37:13 – Comparing rental penetration: 60–61% in the US vs. 80–85% in Europe and Asia
- 41:49 – Prediction that fuel will be a top profitability focus for rental companies by 2025–2026
