If you’ve spent any amount of time in Texas between May and September, you know all too well the woes of the summer heat and the struggles associated, including skyrocketing electricity prices.
A Texas-based startup is aiming to change the game and bring the heat, so to speak, when it comes to electricity procurement.
Gatby Energy Choice has entered the competitive Dallas-Fort Worth (DFW) market with its innovative approach, group purchasing — a concept that, while not unfamiliar in the business-to-business (B2B) sectors, now enters the business-to-consumer (B2C) realm by helping consumers secure better rates on their electricity plans. Gatby is disrupting this entrenched, deregulated industry by equipping consumers to leverage their collective buying power through its Group Rates program, which aims to give consumers more control over their energy choices and simplify a traditionally opaque industry.
Founded in Houston, the startup backed by powerhouse investors in the energy market — including Zach Dell of Base Power — launched its Group Rates program in DFW to offer consumers exclusive, fixed-rate electricity plans through a “reverse auction” process. So, instead of bidding to drive up prices, energy providers compete to offer the lowest rates — and the lowest price always wins. That means the more people who join a group, the lower the rates providers are willing to offer.
Texas Roots, DFW Ambitions
The launch of Gatby’s Group Rates program in DFW marks a strategic move to increase its presence in one of the country’s largest deregulated energy markets. While the DFW area is known for its competitive energy offerings, some consumers still struggle to navigate energy provider pricing and options. Gatby makes the process more straightforward, while simultaneously driving down costs.
“We built Gatby to flip the script,” said Ben Thomas, Gatby’s founder and CEO. “For too long, consumers have had to accept whatever rates and terms were handed to them, with little clarity and zero leverage. Group Rates changes that dynamic — we’re giving consumers a way to become price makers, not price takers.”
Despite operating in a market that has historically been fragmented and difficult for new entrants to penetrate, Gatby already has a leg up with building trust among consumers — currently serving more than 57,500 customers throughout the Metroplex. It’s the company’s focus on clarity and simplicity, combined with its exclusive low pricing, that has given it an edge.
“Honestly, Gatby just makes the whole electricity thing way easier,” Gatby customer William Barns said. “I used to dread picking a plan — too many options, too much fine print. But Gatby breaks it down so it actually makes sense, and the prices they show are better than what I found anywhere else. It’s clear they actually care about helping people, not just selling plans. I tell all my friends to use it now.”
A Consumer-Facing Platform Built on B2B Strategy
A well-established strategy in B2B sectors, group purchasing means businesses aggregate demand to secure lower prices on products and services. Gatby has adapted this model for the consumer energy market, creating a platform where renters and homeowners can join groups to access lower rates.
The process is straightforward: consumers sign up for a group based on their desired service start date, and Gatby handles the auction between energy providers. Once the auction is complete, the group selects the best deal, with no obligation for consumers to commit to the plan if they aren’t satisfied with the result. For those who do choose to enroll, the savings can range from $400 to $1,100 per year, depending on the size of the group and the bids from providers.
Finding the best energy provider and rate typically means consumers are presented with a limited set of options and left to navigate the complex selection process on their own. Gatby’s approach eliminates much of the legwork and offers people a more transparent, consumer-driven way of getting the best deal on their energy.
A Lesson in Adapting Business Models
Gatby’s model is one that can be applied to other businesses, namely those working in highly regulated or opaque industries. First, the importance of transparency can’t be overstated. By simplifying the decision-making process and making the pricing structure clear, Gatby has gained and maintained consumer trust in a market that has long been characterized by hidden fees and confusing terms.
Second, customer agency plays a big role in building loyalty. Gatby’s platform allows users to select their group and, more importantly, influence the group size via referrals — the more people who join, the cheaper the rate. This sense of control has led to high levels of customer satisfaction and, by extension, rapid adoption.
Finally, Gatby’s approach to adapting the B2B group purchasing model as a B2C strategy shows how innovation can come from applying proven strategies in new contexts.
Challenging the Status Quo
Gatby’s launch of its Group Rates program in the DFW market and its innovative use of group purchasing offer a fresh take on how to disrupt a complex industry. By applying B2B strategies in a consumer context, Gatby has created a model that simplifies decision-making, leverages consumer collective buying power, and offers real savings. As the startup continues to scale, its success underscores the potential for other startups to challenge established industries by focusing on transparency, customer trust, and community-driven growth.
“This is about more than electricity rates,” Thomas said. “It’s about rewriting the rules in an industry that hasn’t served consumers well. We believe people deserve better — and we’re just getting started.”
For more information on Gatby and its Group Rates program, visit www.gatby.com.
