How to Start an EV Charging Station Business? - Prismetric

How to Venture into EV Charging Station Business?

EV Charging Station Business

Electric vehicles (EVs) are becoming more popular as people seek greener and cheaper alternatives to fossil fuels. According to a report by BloombergNEF, EVs will account for 54% of new car sales by 2040. This means that there will be a huge demand for EV charging stations in the future. By partnering with a startup app development company, your EV charging stations finder business can turn out to be a successful venture with some calculated risks.

Electric vehicles (EVs) are becoming more popular and affordable as technology advances and environmental awareness grows. According to the Society of Motor Manufacturers and Traders (SMMT), there were 92,913 pure-electric vehicles and 144,335 plug-in models recorded on UK roads as of October 2020. This trend is expected to continue as the UK government plans to ban the sale of new petrol and diesel cars by 2030.

Why EV charging station business is lucrative?

With the rising demand to integrate the automotive technology trends, there many opportunities for the automobile entrepreneurs with innovative car app business ideas especially for the ev segment. Now as the demand for EVs increases, so does the need for charging stations.

Here are some of the benefits of the EV charging station business that you can’t ignore –

Attract customers

One of the main benefits of the EV charging station finding business is that it can attract more customers to your location. EV drivers are always looking for places where they can charge their vehicles conveniently and safely. By offering this service, you can entice them to visit your business and spend time and money while their vehicle is charging.

For example, if you own a retail store, a restaurant, a hotel, or a cinema, you can increase your footfall and sales by providing charging stations for an electric vehicle to your customers. Experts opine that income produced by sales through visitors who shop while their car is getting charged typically contributes to half the EV charging revenue.

Put your business on the map

The charging station business for electric cars and vehicles can put your startup on the map literally and figuratively. By installing charging stations, you can register your location on various online platforms and apps that help EV drivers find nearby chargers. In other words, such features integrated while electric vehicle charging station finder app development can increase your visibility and exposure to potential customers who may not be aware of your business otherwise.

For example, if you own a service station, a car park, or an office building, you can attract more visitors and tenants by listing your location on popular apps like Google Maps and Apple Maps. These apps also allow users to rate and review your service, which can boost your reputation and credibility.

Offer something your competitors are not

There are many trending startup app ideas, and offering something to customers that other businesses don’t is one of the core strategies. Here, the EV charging station finder can give you a competitive edge over your rivals who do not offer this service. By installing charging stations, you can differentiate yourself from other businesses in your area or industry and show that you are innovative and forward-thinking. You can also apply various EV charging station business models to earn profit.

For example, if you own a gym, a spa, or a salon, you can offer added value to your customers by providing electric vehicle charging stations for them. This can make them choose you over other similar businesses that don’t have this facility.

Increase customer connections

Electric vehicle charging station business can increase customer connections and loyalty. By installing charging stations, you can create an opportunity to interact with your customers more frequently and personally while they are waiting for their vehicles to charge.

For example, if you own a cafe or a barbershop, you can use this time to chat with your customers, offer them discounts, promotions, or loyalty cards, or ask them for feedback.

This can help you build rapport and trust with them and encourage them to come back again.

Support a green business initiative by reducing your carbon footprint

A moral benefit of the electric cars and vehicle charging business is that it can support a green business initiative by reducing your carbon footprint. By installing charging stations, you can show your workforce and customers that you care about the environment and are contributing to reducing carbon emissions. This can enhance your business image along with other sustainability measures such as recycling, energy efficiency, or renewable energy sources.

Back up your brand values and CSR commitments

The business of Electric Vehicle charging stations can back up your brand values and corporate social responsibility (CSR) commitments. By installing charging stations, you can demonstrate your alignment with social causes such as climate change, air quality, or public health. This can strengthen your brand identity and appeal to customers who share these values.

The business model of EV charging

After you have the hard-earned funds for the EV charging station business, you have to work on the ROI and income. The business models for EV charging operations vary and depend on the location and the nature of your venture.

EV Charging Station Business Model

Here are some of the popular ways how to monetize your electric vehicle charging station business –

Freemium model

Offering free EV charging to your employees, guests, or customers at no cost could be one way to attract more crowds on an initial basis. This model works excellent for Level 2 chargers wherein drivers and visitors spend more than a 45-minute visit to your place for shopping or dining. The top-up charge shall also work marvelously on overnight charging at hotels/apartments.

Fees for charging

It is a common and popular EV charging business model where nominal fees are charged for electricity, maintenance, and other infrastructure cost recovery. EV drivers have become habituated to paying for charging. For instance, Tesla has worked smartly for its cost recovery model by setting fees across its charging network.

Profit making charges

The fees, as compared to any other EV charging business model, are kept higher to earn profit. This could be the best monetization of your EV charging business especially when you have a charging station at places where there are limited charging options – for example, lonely highways.

Take Your EV Charging Station Business to the Next Level with the App we build

Steps to start EV charging station business

If you are interested in starting an electric vehicle charging business, here are some steps that you need to follow:

Do market research

Before you invest in any business, you need to do some market research to understand your target customers, competitors, opportunities, and challenges.

Some of the questions that you need to answer are:

  • Who is your target market? What are EV drivers and EV car owners’ needs, preferences, and pain points?
  • Who are your competitors for charging station of electric vehicles? What are their strengths and weaknesses? How can you differentiate yourself from them?
  • What are the current and future trends in the EV industry? How can you capitalize on them?
  • What are the legal and regulatory requirements for setting up an EV charging station? What permits and licenses do you need?
  • What are the EV charging setup costs and risks involved in running a business? How can you minimize them?

You can use various sources of information such as online databases, industry reports, surveys, interviews, focus groups, etc. to conduct your market research.

Choose a location

The location of your charging station for electric vehicles is crucial for its success. You need to choose a location that has high traffic volume, visibility, and accessibility for EV drivers and EV owners.

Some of the factors that you need to consider when choosing a location are:

  • The number and type of EVs in your area
  • The availability and price of land or space
  • The proximity and convenience to other amenities such as restaurants, shops, hotels, etc.
  • The competition from other EV charging stations or gas stations
  • The potential for growth and expansion

You can use tools such as Google Maps, Apple Maps, Zillow, LoopNet, etc. to find suitable locations for your EV charging station.

Decide on a business model

There are different types of business models that you can adopt for your charging station for electric vehicles. Other than the models mentioned earlier, industry experts also suggest other common ones. You need to decide on a business model that suits your goals, budget, and target market.

Types of EV Business Models

Subscription: You charge a monthly or annual fee for unlimited access to your charging stations.

Pay-per-use: You charge a flat or variable rate based on the time or energy consumed by each charge.

Advertising: You offer free or discounted charging services in exchange for displaying ads on your stations or app.

Partnership: You partner with other businesses such as hotels, malls, restaurants, etc. to offer EV charging services to their customers.

Buy or lease equipment

The equipment that you need for your charging station depends on the type and level of service that you want to provide. Also, it may differ from nation to nation. You may check the specifications in the country you are operating.

However, there are three main levels of charging:

  • Level 1: This uses a standard 120-volt outlet and provides about 5 miles of range per hour of charging. It is suitable for home or workplace charging.
  • Level 2: This uses a 240-volt outlet and provides about 25 miles of range per hour of charging. It is suitable for public or commercial charging.
  • Level 3: This uses a high-voltage direct current (DC) connection and provides about 200 miles of range per hour of charging. It is suitable for fast or supercharging.

You also need to consider other equipment such as cables, connectors, meters, signs,
security cameras, etc.

You can either buy or lease EV charging equipment depending on your budget and preference. Some of the benefits of leasing equipment are lower upfront costs, tax deductions, maintenance support, and flexibility to upgrade or replace equipment.

Some of the benefits of buying EV charging equipment are ownership rights, long-term savings, customization options, and depreciation benefits. You can compare different EV charging machine vendors and suppliers based on factors such as price, quality, warranty, service, and reputation.

Promote your business

Once you have set up your charging station for electric vehicles, you need to promote it effectively to attract customers. Some of the ways that you can promote your business are to build an EV charging station app that showcases your services, prices, locations, and reviews. Use social media platforms such as Facebook, Twitter, Instagram, and the like to spread the word about your EV charging services across the province or region.

Importance of mobile app or portal in growing the EV charging business

Building a mobile app can help electric vehicle (EV) charging businesses in several ways.

  • Mobile apps can provide customers with real-time information on the availability and location of charging stations, as well as the price and duration of charging.
  • Business Apps enable customers to reserve and pay for charging sessions remotely, reducing waiting time and enhancing convenience.
  • Applications can collect data on customer behavior and preferences, which can help businesses optimize their pricing and marketing strategies.
  • EV charging business apps can also increase customer loyalty and satisfaction by offering rewards, discounts, feedback options, and other features.

If you are looking to develop an application for your EV charging business you ought to know 2 important things, the mobile app development process and how to hire the best remote developers. With these 2 guides, you can be prepared and well-equipped as an entrepreneur to get started with mobile app development.

Need to grow your EV Business with a powerful app?

Mobile app technology for EV charging business

Mobile app technology for EV charging stations is a software solution that enables electric vehicle (EV) owners to find, access, and pay for charging services near them. Mobile apps for EV charging stations can offer various features such as real-time availability, search for the nearest EV charging stations, reservation, navigation, payment, loyalty programs, and feedback.

Mobile apps for EV charging stations can also communicate with the charging stations using protocols such as OCPP (Open Charge Point Protocol). Some of the popular mobile apps for EV charging stations include PlugShare, ChargeHub, and EVgo. Mobile app technology for EV charging stations can help EV owners to overcome range anxiety and increase the adoption of EVs.

How to find the best EV charging station business app developers?

If you have a brilliant idea for an electric vehicle charging station finding app but need help getting it built for your business, you might decide to outsource your app development needs. However, how can you identify the best ones for your project? Many aspects must be considered, including their portfolio, reviews, rates, communication style, and availability. Furthermore, because each business’s needs are unique, some customized app features and functionalities are required to enable the startups to run optimally.

Prismetric is a reputable IT firm that provides cutting-edge mobile app development services to businesses across a variety of industries. Our experienced development teams are skilled at building an application that is successful in meeting the needs of the customer and providing the best services.

So, if you want to get started on creating the ideal business app, get in touch with us now to discuss this further. We would be delighted to help you with every stage of your project until and after a successful launch.

Make EV charging hassle-free for your customers. Let our team design an intuitive and user-friendly EV charging finding app.

FAQs on starting EV charging station business

Why is EV charging station business booming?

The UN and other governing bodies have suggested most nations adopt electric vehicles to save the environment. There is a marked increase in electronic vehicle purchases which makes the charging station business promising in the future.

What are the business models for the EV charging business?

If you simply own an EV charging station, there are business models such as charging fees on each charge. On the other hand, if you have EV charging business apps, there are many monetary options such as advertisements, subscriptions, and so on.

How to build an EV charging station business app?

You may need to research the business in a specific region and competitors’ business strategies. Plan the features you want to have in your app and find the best mobile app developers for the EV charging station app. Discuss and develop the tool ultimately.

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