EV Charging Stations Require Co-Located Services and Amenities to Improve Profitability and Meet Consumer Demands
A new report and EV driver survey released by Next 10, authored by the Institute for Transportation Studies at UC Davis, highlight the need for electric vehicle (EV) charging infrastructure to incorporate additional revenue sources and amenities to become profitable. Just like traditional gas stations, EV charging stations benefit from co-located services such as cafes, restaurants, and convenience stores to improve return on investment (ROI) and enhance the overall user experience.
The survey finds that California EV drivers, regardless of home charging access, are willing to pay a premium for fast public charging stations that offer minimal wait times and proximity to additional services. The report, Analyzing the Business Case & Consumer Preferences for Fast Chargers in California, recommends strategically placing EV charging stations near popular amenities to maximize usage and revenue.
Noel Perry, founder of Next 10, emphasized, “This report shows that building chargers where people are and where they want to be, especially for longer trips, is what’s best for both California drivers and charging station investors.”
Key findings from the report include:
- Public chargers are used more frequently when located within 500 meters of restaurants (2.7 times more usage) and grocery stores (5.2 times more usage).
- Rest stops, malls, parking garages, and restaurants were the most preferred public charging locations.
- EV drivers are 37% more likely to choose chargers with additional amenities, such as restrooms and convenience stores.
- Drivers are willing to pay nearly a dollar more per 100 miles of charge for chargers with no wait times and better amenities.
Alan Jenn, Assistant Professor at the Electric Vehicle group of UC Davis, stated, “EV drivers are telling us that they want chargers co-located with amenities like cafes and restaurants, and they are willing to pay more to charge at locations with these features.”
While public charging demand grows, the report stresses the importance of home charging, noting that 35% of EV owners without home charging access would consider switching back to gas-powered vehicles. The study calls for increased support for home charging infrastructure, balanced with strategies to make public charging stations profitable, such as leveraging business partnerships and optimizing charging models.
With the growing market for EVs, California continues to lead in infrastructure investment, aiming to install 250,000 public chargers by 2025, with public subsidies playing a crucial role in achieving this goal.
