A comparison of owning your EV infrastructure versus the concession model. Who pays in the end?
Remember that when something is free, the user usually becomes a product rather than a customer. There are several advantages for a business to own its own electric vehicle (EV) charging infrastructure compared to a concession model, where a third-party operator installs and manages the EV chargers on the business’s premises. Here are some key advantages:
Revenue Generation
Owning EV charging infrastructure allows businesses to generate revenue from charging services. Businesses can set pricing and billing options for EV charging, and potentially generate income from user fees or subscriptions. This can offset the costs of installing and maintaining the charging infrastructure, and even provide an additional revenue stream for the business.
Control and Flexibility
Owning EV charging infrastructure gives a business greater control over the design, installation, and operation of the charging stations. This allows the business to customize the charging solution to meet its specific needs, including choosing the type and number of chargers, setting reasonable pricing, and billing options, and managing user access. It also provides greater flexibility to adapt the charging infrastructure to changing business requirements over time. It’s key to remember that charging prices are like a scale with a tipping point, and if they cost too much drivers could be put off using them, which could potentially reduce footfall.
Branding and Marketing Opportunities
Owning EV charging infrastructure provides businesses with branding and marketing opportunities. Businesses can brand the charging stations with their logo and colors, creating a visible presence for their brand and enhancing their corporate image. They can also promote their EV charging services as an added amenity to attract customers, employees, and stakeholders, and differentiate themselves from competitors.
Customer Engagement and Loyalty
Owning EV charging infrastructure provides businesses with an opportunity to engage with customers who use the charging stations. EV charging can be seen as a customer amenity, and businesses can leverage this to build customer loyalty by providing a convenient and reliable charging experience. This can lead to repeat business and increased customer retention.
Data Ownership and Analytics
Owning EV charging infrastructure gives businesses control over the data generated by the charging stations. This can include data on charging usage, user behavior, and charging station performance. Access to this data allows businesses to gain insights and analytics that can inform their business strategies, such as optimizing charging services, understanding customer preferences, and identifying potential upsell or cross-sell opportunities.
Long-Term Cost Savings
While there may be upfront costs associated with installing and maintaining EV charging infrastructure, owning the infrastructure can provide long-term cost savings compared to a concession model. Concession models often involve ongoing fees and costs associated with leasing or renting the charging equipment from a third-party operator. Owning the infrastructure outright can potentially result in lower costs over time, especially as EV adoption increases and charging demand grows.
There are however, some advantages to a concession model. Aside from initial capital cost savings, you could benefit from the expertise and experience of a company that focuses purely on EV charging. They can offer you a simplified option to help plan and deliver what’s best for your site. You get this with any Park & Recharge owned installation, as we are a trusted charge point operator with over 14 years industry experience. We use our expertise, experience, and innovative products to make your EV charging installation hand off and hassle free. We don’t offer concession model charging because, in our opinion, we feel the advantages of owned outweigh the advantages of concession models.
Overall, owning EV charging infrastructure provides businesses with greater control, branding opportunities, revenue generation potential, customer engagement, data ownership, and long-term cost savings compared to a concession model. It’s important to also note that the advantages of a concession model may vary depending on the specific terms and conditions of the concession agreement, as well as the business’s unique circumstances and requirements. Careful consideration and due diligence should be undertaken when evaluating the costs and benefits of either model for EV charging to ensure it aligns with the business’s goals and objectives.
