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BP is seeking to pull the plug on its partnership with Velocity Frequent Flyer, ahead of its acquisition of 527 Woolworths Petrol outlets next year. This would mean that Velocity points can no longer be earned or redeemed at BP petrol stations. It is likely that, going forward, BP will seek to form a partnership with Woolworths Rewards or Qantas Frequent Flyer instead.
BP originally tried to terminate the partnership from 30 June, 2017. There’s just one small problem… BP entered into a contract with Velocity stating that the partnership would continue until 15 April, 2018. In addition, the Velocity contract excludes BP from entering into a deal with a third party, such as Woolworths Rewards or Qantas. Velocity is now attempting to sue BP for breach of contract.
After Velocity objected to BP’s attempt to terminate the contract from June this year, BP offered to extend the deal until 1 January next year… but with the removal of the “third party dealing” restrictions. An agreement could not be reached and the case will soon make its way to the Supreme Court of Queensland. Velocity argues that the BP deal is vital to its business strategy.
I can see why they need to end their partnership considering they’ve bought into Woolworths service. They didn’t actively seek out a deal with Qantas but because of Woolworths deal with Qantas it puts them in a tricky position. Could be very interesting if for a small period of time you could choose your frequent flyer program or even double dip.
One member speculates that the deal was not as good for BP as originally expected…
I wonder if it’s because the affiliation wasn’t the revenue generating bonanza BP thought it would be. Perhaps it couldn’t offset the fact that they charge way above what the station across the street charges. Or the fact that half the time your Velocity card wouldn’t work in their outdated POS systems. Or could it be their dumb TV promos weren’t that great. Or that the points took forever to appear. Or…………should I keep going?
The news that the BP-Velocity relationship will soon come to an end has been met with mixed reactions from our members. Some will miss the ability to earn Velocity points at BP.
For me BP is just about the cheapest I can get without going right out of my way. Combine that with the velocity pts & no surcharge for AMEX and they are my go to station. I fill up a couple of times a week with them. Will be disappointing when the Velocity deal is no more.
Others claim that they did not fill up at BP anyway as their prices are uncompetitive.
Quite the opposite experience here – getting Velocity points is about the only “plus” for us in fuelling up at BP. Their prices are usually well above the other fuel retailers in the area, and of the 5 BPs that are easily accessible to us (near home or on the way to/from work), 4 have an AMEX surcharge.
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