The electric car charging business

The electric car charging business is very complex and I think that today no one makes money with them. Perhaps that is why the charging facilities installed are so poorly attended and with so many failures.

I have read of many people who complain about going to charge their car and finding that many of the chargers are not operational, with the great inconvenience that this represents on a long trip.

The rise of the electric car is a reality, with sales skyrocketing worldwide and growing awareness of the need for sustainable mobility. However, this panorama of optimism is clouded by an uncomfortable reality: the charging business, a fundamental piece in the transition to electric vehicles, does not seem to find its economic equilibrium point.

The proliferation of complaints from users about the availability and condition of charging stations is just the tip of the iceberg of a sector that, despite its apparent potential, faces complex challenges that hinder its profitability.

Unlike traditional gas stations, with a consolidated business model and relatively stable margins, electric vehicle charging is in an incipient stage, with various variables that make profitability difficult:

. High initial investment: Installing and maintaining a fast charging station requires a considerable initial investment, especially compared to slow charging points.

. Low utilization rate: Most electric car users charge their vehicles at home or at work, meaning that utilization of public charging stations, especially fast ones, is typically low for much of the day, with the exception of special dates when many people travel

. High operating costs: Maintaining, cleaning and managing charging stations, especially in urban environments, can incur a significant operating cost.

. Competition and market fragmentation: The entry of numerous operators, from energy companies to startups, has generated strong competition and market fragmentation, making consolidation and profitability difficult.

Users’ negative experiences with chargers, especially on long trips, fuel “range anxiety” is one of the main obstacles on electric vehicle adoption. Finding a charger that is available, works properly, and is compatible with your vehicle shouldn’t be a lottery, but the reality is that, in many cases, it still is.

Lack of maintenance and failures in charging stations are a widespread problem that generates frustration among users and damages the image of the sector. But who is responsible for guaranteeing the correct operation of the chargers?

They are supposedly the one that provides the charging service to the car, but they still have little experience, they earn little, and this service is not a priority for them.

Despite the current challenges, I believe the future of the electric car charger business is promising. Demand for charging points is expected to skyrocket in the coming years, driven by the increase in electric vehicles on the road.

To take advantage of this opportunity, the sector must address current challenges and work on innovative solutions:

. Collaboration between actors: It is essential to promote collaboration between manufacturers, operators, energy companies and public administrations to develop profitable business models and guarantee a reliable and efficient charging infrastructure.

. Technological innovation: The integration of technologies for payment management, artificial intelligence for the optimization of charging and energy storage in the charging stations themselves can improve efficiency and profitability. Without forgetting the remote management of the chargers to ensure that they are always operational

. User experience: Prioritizing the user experience, offering clear and accurate information about charger availability, waiting times and payment methods, will be key to fostering trust and loyalty.

Ultimately, the success of the electric car depends largely on the industry’s ability to offer a charging experience as seamless and reliable as that users are accustomed to with fossil fuels.

Let’s hope it doesn’t take us long to reach this situation.