The Shocking Truth About Electric Vehicle Charging That'll Leave You Fuming

To boost electric vehicle ownership, we need to fix the broken business model of public charging, says David Fickling for Bloomberg Opinion.

As the world shifts towards a more sustainable and environmentally-friendly mode of transportation, electric vehicles (EVs) are gaining popularity. However, one major hurdle stands in the way of widespread adoption: the lack of efficient and profitable public charging infrastructure.

The current state of public charging is a mess. With multiple companies and networks operating independently, it's often difficult for EV owners to find a charger that works with their vehicle. The fees associated with charging are also often exorbitant, making long road trips a costly endeavor. Moreover, the business model of public charging is fundamentally flawed, relying on expensive hardware, labor-intensive maintenance, and costly real estate to operate.

The root of the problem lies in the fact that public charging companies are struggling to make a profit. Most charging stations are not used frequently enough to generate sufficient revenue to cover operating costs. As a result, companies are forced to charge high prices to break even, which in turn deters potential customers.

This creates a vicious cycle where public charging companies can't generate enough revenue to invest in improving their services, leading to a lack of trust and confidence in the charging network. Consequently, it's becoming increasingly difficult for governments and companies to convince people to switch to electric vehicles when the charging infrastructure is so unreliable.

A possible solution to this problem lies in the implementation of a subscription-based model, similar to what we see in the telecommunications industry. Under this model, EV owners would pay a monthly fee for access to a network of charging stations, rather than being charged on a per-use basis.

Another approach is for charging companies to partner with businesses, shopping centers, and restaurants to offer charging as a value-added service to customers. This way, charging becomes an added benefit, increasing foot traffic and encouraging customers to linger longer, thus generating more revenue for both the business and the charging company.

The government can also play a crucial role in promoting public charging infrastructure by offering subsidies and tax breaks to companies investing in the sector. It can also implement policies that prioritize the development of fast-charging corridors along highways, making long-distance travel in electric vehicles more practical.

To increase consumer confidence, public charging companies must prioritize standardization, offering users a seamless charging experience, regardless of network or provider.

Ultimately, transforming the business model of public charging from one focused on generating revenue per charge to one that offers subscription-based services and strategic partnerships with businesses, will not only solve the profitability issue but will also fuel the widespread adoption of electric vehicles, propelling our planet towards a cleaner, greener future for all.