Priceline.com Pumps Its Online Gas Program

By Sushuma on 2000-03-05 02:28:11

(Computerworld)-Priceline.com's new program that will allow consumers to bid on gasoline prices is taking off on May 20 with or without the involvement of major oil companies, the Internet discounter said.?"We're certainly meeting with them, but we have nothing to report right now," said Robert Padgett, a spokesman for Priceline WebHouse Club, the affiliate of priceline.com that announced the program last week.?"We could go ahead without them." That's because most of the proposed consumer savings of 10 to 20 cents per gallon will be derived from ads on the gasoline page of the priceline.com Web site.?Priceline will also work with individual gasoline retailers, which it expects will agree to shave 1 to 3 cents per gallon off gas prices, where they make very little profit.?In return, gas retailers expect Priceline to drive additional customer traffic their way, presumably to spend more on food and other items that deliver the bulk of their profits.?To date, Priceline has lined up more than 100 sponsors outside of the fuel industry who will offer consumers additional gas price credit in return for agreeing to try their products and services.?Padgett declined to name any of the potential sponsors.?Here's how the new gas deal works: Before the program launches in May, consumers can apply for a Priceline gas card on the Web site.?The company then forwards a list of local gas stations and the consumer preapproves three or more of them.?Once the program goes live, consumers will enter the site and name the per-gallon price they are willing to pay for self-service gas and the amount they wish to buy, at a minimum of 9 gallons and maximum of 50 gallons per month.?More...

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