This is Matt Reustle and today we are breaking down WEX, a big fish in a less known pond. WEX is a leader in the fleet card market - they offer trucking businesses special credit cards which help secure advantaged rates on fuel among many other things. This is a business with a long history as WEX is headquartered in Maine, and really came to life in the 1980s.

To break down WEX, I'm joined by Mark Tomasovic from Energize Capital, a multiple-time guest on Business Breakdowns. We get into the history of this industry and how WEX found a very creative way to accelerate adoption within this market. Please enjoy this breakdown of WEX.

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Show Notes

(00:02:57) - (First question) - An overview of what WEX is and what they do

(00:03:50) - A summary of the market that WEX operates in

(00:05:59) - The history of the company’s creation

(00:08:53) - The importance of signing up large gas companies rather than retail locations

(00:11:33) - Value propositions behind providing fleet cards

(00:12:53) - How the economic model works for the cards

(00:13:48) - The percentage of spend equivalent to Visa or Mastercard

(00:14:31) - The difficulty behind switching from one fleet card provider to another

(00:17:05) - The role fuel prices play in the total revenue of the business

(00:20:09) - Threats to consider on the supply end of the business

(00:21:57) - Recharging at home and the process of receiving a credit

(00:23:06) - Other businesses WEX is involved in

(00:24:27) - A comparison between all of WEX’s businesses and where they direct focus

(00:25:13) - A look into their health and employee benefits line

(00:26:39) - The overall financial profile from a revenue and margins standpoint

(00:28:43) - How big players like Amazon or Walmart play a part in potential business

(00:30:02) - The threat of Visa or Mastercard entering the same space

(00:31:17) - Total amount of revenue generated from electric vehicle fleets

(00:33:27) - Electric charging locations and the process of building these facilities

(00:35:13) - Technology invested into creating faster charging stations

(00:35:50) - An overall look at risks for the business

(00:37:54) - Other parts of WEX that stand out

(00:40:10) - Lessons learned from studying WEX

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