LONDON (ICIS)--Motor oil sellers face “multiple barriers” to some consumers if car-sharing businesses grow and seal national deals for car servicing, which could eliminate the need for branded motor oil purchases by individuals, the lubricants industry heard on Thursday.
As digitally led businesses such as Uber make inroads into new markets and disrupt the traditional model of car purchases, motor oil sellers need to be more creative in their strategy, suggested George Morvey from market research firm Kline.
He cited the example of WAYMO, which has launched a commercial self-driving, ride-hailing service in Phoenix, Arizona, called Waymo One. He said the service has signed deals with rental company AVIS Budget and dealership chain AutoNation for various services across the US.
“With these two agreements, it’s provided multiple barriers to branded [aftermarket passenger car motor oil],” said Morvey.
Lubricant sellers are going to have “difficulty tapping into this kind of mobility service provider”, he suggested.
“As more examples become mainstream, I think [it will be] more important for branded aftermarket lubricant suppliers to think creatively”, to make sure their product is selected, added the analyst.
He was speaking at the 23rd ICIS World Base Oils & Lubricants conference which runs in London 20-22 February.