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How Does GasBuddy Make Money (Business and Revenue Model)

The GasBuddy business model

How Does GasBuddy Make Money?
Here’s what you should know:
  • What is GasBuddy, and how does GasBuddy work?
  • How does GasBuddy make money?
  • Subscription Revenue (GasBuddy Premium)
  • Advertising and Business Page Products (B2B)
  • Interchange Fees (GasBuddy Credit Card)
  • GasBuddy profit and revenue
  • What is the GasBuddy business and revenue model?
  • GasBuddy funding and valuation

How does GasBuddy make money and how is it free to use? Here is a full, in depth, breakdown of their three (3) revenue streams and the different products and services they offer, as well as the GasBuddy business model, their year over year revenue, and how GasBuddy works.

What is GasBuddy, and how does GasBuddy work?

GasBuddy is an app that helps find the cheapest gas stations for drivers across more than 140,000 gas stations in the United States.

Founded in 2000 by Dustin Coupal and Jason Toews, GasBuddy went on to later get acquired by PDI Software on April 4, 2021, for an undisclosed amount.

Since that time, GasBuddy now has more than 12 million monthly active users using their app.

How does GasBuddy work? To use GasBuddy, users must first download their mobile app on the Apple Store or Google Play store; or by visiting their website.

Once downloaded, drivers can find the cheapest gas by simply clicking on the “Find Gas” tab and customizing the search filters to let GasBuddy locate the gas stations that match the drivers’ criteria.

Some of GasBuddy’s competitors include Upside, Drivvo, Gas Guru, Waze, Google Maps, and other apps that help find the cheapest gas.

GasBuddy App in Apple App Store | GasBuddy Business Model | How Does GasBuddy Make Money? | How Does GasBuddy Work?
Source: Apple App Store | GasBuddy

How does GasBuddy make money?

According to GasBuddy, GasBuddy has more than 12 million monthly active users and over 1.7 million GasBuddy cardholders.

So how does GasBuddy make money off of all these active users?

Below is a breakdown of how much money GasBuddy makes and its revenue model. Including all revenue streams and how much they charge for their services.

Here are the 3 ways of how GasBuddy makes money (in 2022):

GasBuddy has a revenue model that makes money in three (3) ways; subscription revenue, B2B revenue, and interchange fees from the GasBuddy credit card.

#1. Subscription Revenue (GasBuddy Premium)

Though GasBuddy is free to use, GasBuddy makes money by upselling its users to its paid subscription membership, GasBuddy Premium.

Premium members get access to perks such as saving up to 40ยข per gallon at the pump, 24-hour roadside assistance through Allstate, and more – all for a monthly fee. Which you can see below.

How much does GasBuddy cost?

  • $9.99 per month

Note: GasBuddy has over 12 million monthly active users; although how many of those are paid subscription users is unknown.

#2. Advertising and Business Page Products (B2B)

GasBuddy also makes money on the B2B (business to business) side of things by offering B2B solutions.

Those solutions are advertising and business page products tailored for business clients. Some of those clients include notable brands such as Chase, The Hershey Company, Wendy’s, ExxonMobil, BP, and more.

GasBuddy Business Model | How Does GasBuddy Make Money? | How Does GasBuddy Work?
Source: GasBuddy

Note: GasBuddy ads are sold on a cost per click business model, meaning brands only pay when users click on the ads.

#3. Interchange Fees (GasBuddy Credit Card)

In addition to subscription and advertising revenue, GasBuddy also makes money from interchange fees on their credit cards.

How does GasBuddy make money from interchange fees? Every time a GasBuddy cardholder uses their Mastercard issued credit card, Mastercard charges the merchant an interchange fee between 1.35% + $0.00 to 3.25% + $0.10 of the charge amount. From that, Mastercard gives a percentage of its interchange fee revenue to GasBuddy.*

As noted above, there are over 1.7 million GasBuddy cardholders that have spent more than $37.3 million in GasBuddy card transactions. All of which GasBuddy collects an interchange fee from.

GasBuddy Credit Card Fees | GasBuddy Business Model | How Does GasBuddy Make Money? | How Does GasBuddy Work?
Source: GasBuddy

Note: It’s unclear what percentage GasBuddy receives from Mastercard.*

GasBuddy profit and revenue

GasBuddy has not released any official reports in regards to company earnings.

Note: Because GasBuddy is a privately held company, they are not required to make their annual reporting, such as Form 10-K’s, pubic.

What is the GasBuddy business and revenue model?

GasBuddy makes money through a few revenue models that they combine within their company, they are:

  • Freemium (upselling) business model
  • Subscription business model
  • Advertising business model
  • Business to business (B2B) revenue model
  • B2B2C (partnerships) business model
  • Mergers & acquisitions (M&A) business model

GasBuddy funding and valuation

According to GasBuddy’s Crunchbase profile, GasBuddy has only raised $4 thousand over 1 round in 1999.

GasBuddy was acquired by PDI Software on April 4, 2021, for an undisclosed amount.