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EV INFRASTRUCTURE
Every little helps
As supermarkets have generated additional EV charging revenue, others should be inspired says Sara Sloman, chief strategy officer, Paythru
EV INFRASTRUCTURE
Every little helps
As supermarkets have generated additional EV charging revenue, others should be inspired says Sara Sloman, chief strategy officer, Paythru
In January 2024, Sainsbury’s launched Smart Charge – dedicated ultra-rapid 150kW EV charging points – at stores around the country. Following Tesco’s move into the space, initially offering free 7kW charging with Pod Point, in a bid to entice shoppers to dwell longer, the introduction of Smart Charge will see over 750 bays installed in more than 100 Sainsbury’s locations by the end of 2024. Not only does this put the supermarket chain in the top five providers of ultra-rapid charging in the UK, it also represents a huge opportunity for retailers such as Sainsbury’s to use charging points as a means of generating additional revenue and collecting more detailed customer data – from private and fleet EV drivers alike.
Installing charging points can be costly – and it can take a few years before they become revenue-generating assets. But chargers are not the day-to-day business of supermarkets, of course. Clearly, the sooner a charging point owner can recoup that cost, the better – they want them in and they want them to generate maximum value as soon as possible.
There are opportunities to generate revenue beyond just maximising utilisation, however and it’s here that charge point and fleet operators can learn from the retail industry. By taking a more customer-centric approach to EV charging, operators can transform traditional cost centres into revenue hubs.
“In January 2024, Sainsbury’s launched Smart Charge – ultra-rapid 150kW EV charging points – at stores nationwide. This move positions the supermarket among the top UK providers and highlights the potential for EV infrastructure to generate additional revenue and valuable customer data”
Sara Sloman, chief strategy officer, Paythru
Added-value services
To capitalise on these opportunities, charging point owners must be able to build added-value services on top of their core offerings, such as loyalty programmes and personalised marketing. And, with electric fleets becoming increasingly popular, fleet operators also have an opportunity to generate revenue from charging infrastructure by encouraging its use during quieter times, making their chargers more desirable by offering a more rewarding user experience.
Fleet operators, for example, could work closely with external charging point owners to offer a discounted rate to help persuade their drivers to use their charging points more often when on the road. Or, to further encourage loyalty, they could liaise with retail and hospitality chains to offer drivers discounts or giveaways, such as a free cup of coffee or cut-price meal in-store or in a nearby café or restaurant while waiting for their vehicles to charge.
Advertising could be another source of revenue for operators, with adverts for particular brands and products delivered to drivers on a payment terminal screen or via a mobile app while their payment processes. Perhaps surprisingly, some supermarkets deploy unattended retail units, such as Costa machines, Starbucks fridges and vape vending machines, often using car park space that would otherwise go unused. Charge point operators can also deploy similar units, from which drivers can use contactless payment methods to purchase snacks, drinks and more while charging their vehicles. Indeed, this latter suggestion can lend itself well to fleet operators who, space allowing, could install such retail units alongside their on-side charging points.
Cloud-based payment platform
Supermarkets undoubtedly have an advantage when it comes to monetising large EV charging deployments. They have large estates, big capital investment and public trust. They have also entered the charging market at a time that allows them to pick and choose from the best hardware and software available on the market.
But that’s not to say the opportunity for additional revenue is unattainable for charge point and fleet operators. The hardware and software they need are available: a cloud-based digital payment platform will allow operators to set up a software-based system that offers a range of payment options – via mobile, RFID card, contactless and more – to suit a range of different users. Operators can offer discounted charge rates and cut-price food and drinks, serve advertisements, and deploy unattended retail units.
Importantly, with the payment platform in the cloud, rather than being tied to a charging point, the integration between charging points, retailers, advertisers, payment providers and other third parties can be easily managed behind the scenes without any disruptions.
After all, when multiple parties are involved, payments can become complicated. There can be sets of complex reciprocal arrangements that need to be worked out and invoiced for each month, creating time and process requirements, not to mention missed interest while an operator’s money sits in a third-party’s account. Software can solve this issue by splitting and combining multiple payments in the cloud while providing a seamless experience for drivers. Sainsbury’s, for example, while having the highest pre-authorisation fee of all EV charging sites, is able to release that fee almost instantly, protecting itself and the consumer.
With such technology in place, charging point and fleet operators alike can then look to retailers like Sainsbury’s, and its recent move into EV charging, for inspiration on how to make the most of the commercial opportunities available to them for maximising the revenue generated by their charging points.
