The age of digital disruption
A new smartphone-based service that delivers fuel to your door is among Shell's latest innovations. It is part of the growing rise of digitalisation across the global economy.
Sjoerd Hoogerbrugge never considered filling up his car at the petrol station to be a problem. It was just a simple task that he fit into his working week.
But now he gets his fuel delivered directly to his car: sometimes at work, sometimes at home.
"Many people are able to order their groceries and taxis online, so why not order fuel online too?" says Hoogerbrugge, who works as a facilities manager for a website sales company in Rotterdam.
"It's two clicks. You set the time, set the location and then it's done."
Hoogerbrugge lives and works in a region of the Dutch city where Shell is piloting a new digital service called Shell TapUp. Using an app on a smartphone, the service delivers petrol and diesel around the city directly to people's cars.
Watch: Inside Energy film showing how Shell TapUp works
Duration: 02:36 minutes
[Audio:]
Background music commences
[Video footage:]
Montage of the TapUp truck driving through different residential areas
[Erik Miedema voice over:]
“Immediately I think that people are saying, kind of: 'What's that?'”
[Video footage:]
Shot of ground which pans to show car and TapUp truck driving away
Text: Rotterdam, The Netherlands
[Erik Miedema voice over:]
“It's really a large community from the US, Asia, but also in Europe who spent nearly a year developing this vehicle...”
[Video footage:]
Montage of shots of the TapUp truck driving along residential road
Text: Shell TapUp delivers fuel to your car
[Erik Miedema in vision:]
Erik Miedema outside large building standing in front of truck
Text: ERIK MIEDEMA, MANAGING DIRECTOR, SHELL TAPUP
“We're still in the pilot phase and we're really trying to understand what the customer needs are.”
[Video footage:]
Back of man's head walking through office
[Matt Sherburne voice over:]
“It's different types of enterprises and from a customer segment...”
[Matt Sherburne in vision:]
Matt Sherburne outside standing in front of truck
Text: MATT SHERBURNE, OPERATIONS MANAGER, SHELL TAPUP
“...it's, you know, stay at home moms, it's also people who are at work.”
[Video footage:]
Sjoerd Hoogerbrugge on laptop in office
[Sjoerd Hoogerbrugge voice over:]
“Most people already order their groceries at home...”
[Sjoerd Hoogerbrugge in vision:]
Text: SJOERD HOOGERBRUGGE, CUSTOMER
“... so why don't you order your fuel at home?”
[Video footage:]
Sjoerd Hoogerbrugge on phone with laptop in office
“In the office when I think I need fuel...
[Video footage:]
Sjoerd Hoogerbrugge on phone standing by window, followed by close up of smartphone, followed by Sjoerd Hoogerbrugge walking away from window
“...when I don't have time after work, I can order it from the office. Set the time, set the location and you order it and then it's done.”
[Video footage:]
Close up of man in high-visibility jacket with petrol pump
Text: Shell TapUp currently delivers petrol and diesel
[Video footage:]
Medium shot of two men in high-visibility jacket pulling petrol pump from TapUp truck
Text: Alternative energies could potentially be delivered in future
[Video footage:]
Montage of shots of two men in high-visibility jackets filling up cars
Text: Such as GTL, biofuels, hydrogen or electricity
[Richard Koster voice over:]
“In this location, we have around 30 to 60 rental cars.”
Text: Shell TapUp also refuels cars for businesses
[Richard Koster in vision:]
Text: RICHARD KOSTER, BEELEN MOBILITY
“In the first week, we saved about ten hours working time of the rental employee...”
[Video footage:]
Close up of hand closing car petrol flap
[Richard Koster voice over:]
“...and some 200 kilometres driving up and down to the fuel station.”
[Video footage:]
Pan shot of the TapUp truck and a man getting in, followed by shot of truck driving away
[Richard Koster voice over:]
“We can spend more time and focusing on the core business.”
[Matt Sherburne in vision:]
Matt Sherburne outside standing in front of truck
“People are really taking to the idea and what's, I think, what's really encouraging to us is that it's different types of people.”
[Video footage:]
Sjoerd Hoogerbrugge on phone in office, followed by Richard Koster walking to his car in window reflection
[Matt Sherburne voice over:]
“We've kind of become a part of the scenery, people start to get used to us being...”
[Video footage:]
Front shot of TapUp truck driving in residential area
[Matt Sherburne voice over:]
“...in their neighbourhoods as we are going about our business. It's become a bit normal...”
[Video footage:]
Side shot of TapUp truck drivers in truck window, followed by front on shot of two men driving in truck
[Matt Sherburne voice over:]
“...for people to see us out and about and delivering fuel to them.”
[Erik Miedema voice over:]
“One of the things we try to do is...
[Erik Miedema vision in:]
“...be extremely close to our customers, we actually know all of our customers by name at the moment.”
[Video footage:]
TapUp truck driving in residential area shot through trees, followed by close up of TapUp truck drivers
Background music audible
[Erik Miedema voice over:]
“Authorities trust our service because we have a very strong track record...”
[Video footage:]
Wider shot of TapUp truck turning corner, followed by front on shot of truck driving, followed by side shot of truck passing street
[Erik Miedema voice over:]
“At the same time, municipalities like the electricity part of the vehicle because it's quiet. It's less pollutant.”
Text: Shell TapUp currently operates like a start-up company
[Erik Miedema voice over:]
“There are a lot of moving parts...”
[Video footage:]
TapUp truck driving and turning corner
“...and to have the mandate and the empowerment from the Shell organisation and having that freedom and autonomy makes us...”
[Video footage:]
Close up of side of truck drive past
“very agile and focused.”
Text: It hopes to expand the pilot to new countries
[Video footage:]
Montage of shots of two men in high-visibility jackets opening the back of a TapUp truck and filling up cars
[Erik Miedema voice over:]
“It has been an incredible adventure. You feel day in, day out that you can make a difference in the energy industry...”
[Video footage:]
Close up of Matt Sherburne smiling in front of TapUp truck
[Erik Miedema voice over:]
“...and I think I speak for the entire team...”
[Video footage:]
Matt Sherburne and other man in high-visibility jackets working on TapUp truck
[Erik Miedema voice over:]
“...that we really try to make a difference and...”
[Erik Miedema vision in:]
“...that's truly exciting.”
[Video footage:]
Erik Miedema smiling and laughing outside building in front of TapUp truck
Fade to white
Graphic: Shell logo
Text: © SHELL INTERNATIONAL LIMITED 2017
Fade to black
The rise of digital
The TapUp pilot began in May 2017 and is a response from Shell to the rise of digitalisation across all areas of the economy. From taxis to takeaways, hotel bookings to grocery shopping; new digital services have affected how we live our lives.
It is big business too. In the last decade, companies like Amazon or the ride-hailing app Uber have become multibillion dollar enterprises. Accenture, the strategy and consulting firm, estimates the digital economy now represents 22.5% of global gross domestic product (GDP). It expects that figure to continue to rise.
It is not just new players that need to embrace digital though. Established organisations must adapt or risk being disrupted themselves.
"There is no boardroom in the world today where senior leaders are still debating whether digital is important or not to their future," says Ron Adner, Professor of Strategy and Entrepreneurship at the Tuck School of Business at Dartmouth College in Boston, USA. "The question is, what do we do about it and when?"
Digitalisation in energy
Within the energy industry, digital is starting to have an impact. Shell recently set up a digital ventures team that aims to use advances in digital technology to produce innovative solutions for its customers.
"We're responding to digital disruption," says Roger Hunter, Vice President of Digital Ventures for Shell’s New Energies business. "We're aiming to make products that can be commercially successful and make life easier for the customer."
Hunter's team has created and invested in several ventures. They include FarePilot, an app in the UK that helps self-employed taxi drivers identify areas with high demand, and WonderBill, an online tool for residential energy customers, that allows them to keep track of all their bills on one website, and to find better deals from competing suppliers.
An eye on the future
The Shell TapUp idea also originated from Shell's digital ventures work, before being developed by its retail team. Since then, hundreds of engineers and technical specialists have worked on the delivery vehicle and the app.
"It's been an incredible adventure," says Erik Miedema, Shell TapUp's Managing director and a former fuel pricing manager. "We have sold out our first delivery vehicle. We're now delivering to a wide range of repeat residential and business customers."
The pilot has been set up to test the concept as well as the technology and to find out more about where customer demand might come from.
They are taking inspiration from the digital disruption culture of start-up companies.
Shell TapUp's workshop is in a rented warehouse in the industrial suburbs of Rotterdam, where the small team, comprising 15 staff and contractors, aims to generate a dynamic, entrepreneurial culture that can take decisions with speed.
"Having that freedom and autonomy makes us very focused," says Miedema. "You have to trial fast, but also stop things incredibly fast if they are not working. The only way to do that is to have a small, agile team."
Miedema hopes to expand the pilot across the Netherlands and then to other countries. His team is already working on ways to provide a wider range of fuels like biofuels, hydrogen or electric in the future.
"We don't intend to be a petrol site on wheels. We're really trying to build a new energy infrastructure," he says.
For Shell, the TapUp pilot is about adapting to change in the energy and digital landscape.
That's something that Professor Adner says is crucial. "Organisations must have a wider lens, and keep their eyes open to all the changes happening around them."
"Take the former camera company Kodak for example. They invested, but they did not recognise that their ecosystem was changing, which would change the fundamental rules," he adds. "Companies must recognise these changes and respond. How they react will shape their future. For many it may even determine it."
By Andrew Wilson
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