BenzinLitre
The app that mapped petrol stations with their latest prices and facilities
- Founded
- 2018
- Closed
- 2022
- Lifespan
- 4 years
- Country
- Turkey
- Sector
- Mobility and transport
- Founders
- Görkem Ünel
- Investors
- Can Ekicioğlu
- At its peak
- More than 1 million users (Webrazzi, 2022)
- Cause of closure
- Business model failed
What did it do?
BenzinLitre was a mobile app that showed drivers the petrol stations nearest to them and their petrol, diesel and LPG prices. Prices were gathered from users' updates, and stations' facilities, such as a shop, toilets or a car wash, were also listed. In 2019 the app also began operating in Germany.
Why did it shut down?
The farewell message posted on social media on 29 December 2022 gave no details about the reasons for the closure. The team halted operations, saying it hoped to return if conditions allowed. The founder had made clear from the start that the app was created for the public good and would always be free for users; on the revenue side, it developed special projects with brands. Its 2020 targets of direct payments, expansion into Italy and 500,000 users suggest the start-up was looking to broaden its revenue model. This picture can be read as a case of a large user base failing to turn into a sustainable business on its own.
The story
In early 2018 Görkem Ünel set out with a question that seemed simple: could you see the latest prices of every petrol station in Turkey, whether they were open and even whether they offered free tea, in a single app? Ünel, who had worked at Hepsiburada, Rocket Internet, Trendyol and Criteo, founded the super intelligence applications company BRAIN MINDS for the job and launched BenzinLitre. In March 2018 Webrazzi wrote that the app had passed 10,000 active users within a month.
Prices were crowdsourced; users earned points for their updates and competed on a leaderboard. The app also listed stations' facilities, such as a shop, toilets, a car wash and coffee options. The founder said the app had been created for the public good and would always remain free for users. Over time the start-up developed special projects with companies such as Shell, Aygaz and Lukoil.
BenzinLitre took to the stage at Webrazzi Arena 2018, won start-up competitions run by İTÜ Çekirdek, the Istanbul Technical University incubator, and by Mercedes-Benz Türk, and expanded to Germany a year after it was founded. In July 2020 it received its first investment, from Can Ekicioğlu, at a valuation of 9 million TL. At that point the 14-strong team, serving 150,000 drivers, planned to reach 500,000 users by the end of the year, expand into Italy and add a direct payment option to the platform.
User numbers eventually passed 1 million. But on 29 December 2022 the start-up announced, in a farewell message posted on its social media accounts, that it was halting operations. The message gave no reason for the closure. The team recalled five years of living through price rises and cuts together with its users, and said it hoped to return if conditions allowed. The farewell ended with a short note reminding users that they could turn off notifications.
BenzinLitre's story shows that reaching a large user base does not on its own mean a sustainable business. A utility app that always stayed free for users and relied on partnerships for its revenue looks like one of the likely factors behind this outcome.
Lessons for founders
- If you are building a free utility app, settle your revenue model before your user numbers take off.
- Crowdsourced data is a strong start, but not a defensible business on its own.
- Before expanding to new countries, try to build a self-funding model in your home market.
Sources
- BenzinLitre announces it has halted operations (Webrazzi, 2022-12-30)
- BenzinLitre, the App That Shows Where the Cheapest Petrol Is, Announces It Is Ceasing Operations (Webtekno, 2022-12-29)
- BenzinLitre receives its first investment from Can Ekicioğlu at a 9 million TL valuation (egirişim, 2020-07-07)
- The start-up that leads you to affordable petrol: BenzinLitre (Webrazzi, 2018-03-23)
- BenzinLitre raises investment at a 9 million TL valuation (Webrazzi, 2020-07-07)
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