|
Online firm to allow drivers to lock into lower gasoline prices Purchasers could charge as much as 50 gallons a month on credit card beginning May 20 Donna Tommelleo Associated Press Writer
Pinched at the pump by some of the highest gasoline prices in a decade, motorists will be able to turn to the Internet for relief this spring.
Priceline.com, the name-your-own-price Web site for travel, groceries and home mortgages, said Feb. 25 it is adding gas purchases beginning May 20.
“This is the perfect time for consumers to do something about the high cost of gas,” said Jay Walker, the company’s co-founder and chairman, who estimated that most motorists would save 10 cents to 20 cents per gallon.
Walker said the company can offer lower prices because participating gas stations will pay it a few cents per gallon to get new customers.
Analysts applauded the latest endeavor, saying it complements the company’s product line.
It “fits exactly in their sweet spot. If you buy gasoline from Priceline, you’re more likely to buy groceries, you’re more likely to by airline tickets,” said Harry Wells, of Adams, Harkness & Hill Inc. in Boston.
The 2-year-old company is expected to crack $1 billion in revenues this year and turn its first profit in early 2001.
“They are a juggernaut and on their way to profitability,” said Wells.
Motorists will be able to buy up to 50 gallons of gas a month using the service. They will choose a per-gallon price on Priceline.com’s affiliated site, WebHouse Club.
Participating stations to be listed soon If the price is accepted, the customer’s credit card will automatically be charged. The person can then drive to a participating gas station and use a special Priceline.com credit card that will complete the purchase. The company said a list of eligible stations around the country would be available in about a month.
The program will take effect just before the heavy-driving days of summer, when the American Automobile Association warns there may be short supplies and even higher prices.
“It’s very timely,” said Kelly Carter, spokeswoman for AAA of Greater Hartford.
| 