BP says its EV chargers will be more profitable than pumps — here’s how it can happen
The color of money is green
Story byIoanna Lykiardopoulou
Ioanna is a writer at TNW. She covers the full spectrum of the European tech ecosystem, with a particular interest in startups, sustainabili(show all)Ioanna is a writer at TNW. She covers the full spectrum of the European tech ecosystem, with a particular interest in startups, sustainability, green tech, AI, and EU policy. With a background in the humanities, she has a soft spot for social impact-enabling technologies.
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1. All in on fast chargers
Let’s admit it: offering fast charging is a great selling point and BP has got it right. Why wait for hours to charge your car, when you could fill in enough juice within 20 to 30 minutes? People value their time and it’s only natural thatthere’s rising demand for wider access to fast chargers.
2. Location is key
Convenience and reducing range anxiety play a key role when it comes to deciding charging on the go. In fact, according theFuel Institute’s latest research, EV consumers prefer convenience over cost.
For example, EV charging users would be willing to pay double to access a charger close to officer buildings or highways. They also wouldn’t mind paying more for a convenient commercial charging station than to charge overnight at home with lower rates.
3. Time is money
Even when fast charging, EV owners would still need to spend some 30 minutes at the stations. That’s enough time to generate indirect revenue from attached convenience stores. Be it a coffee, a snack, or some other type of consumer product, people are much more likely to buy something while waiting.
And beyond that, there’s an opportunity for an entirely new business model. BP could take it one step further and develop charging hubs, where consumers could shop at branches of big retailers and supermarkets. That wouldn’t just attract more customers, but also generate commission-based profit.
4. Teaming up with OEMs
BP could collaborate with automakers for the integration of its charging stations into their navigation systems or mobile apps. Ease of access toreal-time information, such as location and charger availability, enhance the drivers’ experience and smoothly directs them towards selected stations.
That way, BP could get greater charging volumes and access to customer data on charging and driving behavior.Similarly, OEMs could get commissions on the charging revenue — and that’s a win win.
