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PlugSurfing: global network of charging stations


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These slides use concepts from my (Jeff Funk) course entitled Biz Models for Hi-Tech Products to analyze the business model for PlugSurfing. PlugSurfing is creating a global network of EV charging stations that can be used with a single account thus eliminating the need for multiple passwords, credit cards, and other identifiers. It had created a network of 25,000 charging points by January 2016, mostly in Germany and the Netherlands. It already has a density of 17 charging points per square kilometer in central cities and 4 per square kilometer in suburbs. It has also begun expanding into France, Italy, and Belgium. The slides summarize the business model for PlugSurfing including the value proposition, customers, method of value capture, scope of activities, and method of strategic control.

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PlugSurfing: global network of charging stations

  1. 1. Creating a Global Network of Electric Vehicle Charging Stations Timo Tapio Ristola Joona Petteri Karjula Minja Wilhelmina Axelsson Iivari Joonatan Heikkilae Tommi Juho Miikkael Karjalainen Thilo Marcel Braun
  2. 2. Introduction to Electric Vehicle (EV) Picture:
  3. 3. Honda EV plus Ford Ranger EV Tesla Roadster Mitsubishi I MiEV Nissan Leaf Tesla Model S P85 BMW i3 VW e-Golf 0 50 100 150 200 250 300 350 1990 1995 2000 2005 2010 2015 2020 Range(mi) Year launched Range evolution of electric cars Size of the ball indicates list price varying from 29 kUSD (I MiEV) 109kUSD (Tesla roadster) In 2015 range reached over 400km (Tesla) • Battery is one of the top priorities in development • Battery size 16-85kWH • Battery usage is normally 15-28kWh / 100km
  4. 4. EV market has been growing rapidly after 2010 Source: Over 200 000 new registrations in China
  5. 5. In many countries government supports EV's
  6. 6. EV Charging •Up to 3kWMode 1 •3.3-10kWMode 2 •10-50kWMode 3 •Up to 120kWMode 4 0 50 100 150 200 250 300 Mileage per hour Mileage per hour
  7. 7. EV Charging cost depends how fast you want it to be charged Source: DOI: 10.1109/TPWRS.2010.2049133
  8. 8. Current state of charging points Gasoline Battery (fast) Battery (slow) Swapping Induction Description Conventional refueling Cable and plug (specialized charging station) Cable and plug (conventional plug, e.g. home) Replacing a battery for a fully charged one (special swapping station) Battery in the car is charged by wireless induction charging Time needed 5 min 10-30min 4-8 hrs 5 min 2-8 hrs Example car All ICEs Tesla Model S, Nissan Leaf All EVs Renault Fluence Few pilot cars Availability in Europe Widely available Limited: <1000 Limited: <20 000 Very limited, not growing Not available Payment Cash/credit card Credit card/ Monthly subscription Credit card/ Monthly subscription NA NA Source: Modified from McKinsey
  9. 9. Introduction -> PlugSurfing -> Value Capture -> Competiton -> Future
  10. 10. Problem: multiple contracts
  11. 11. Solution: Plugsurfing
  12. 12. • Enter payment details once • Tap to start charging • Access 25 000 charging points How?
  13. 13. Overview and History • Initial revenue from licensing map data • Integration into infotainment system • Car OEM's (eg. Opel) & OEM suppliers Database of charging point locations in Europe (2012) • Application with charging point locations • Capture customer details with user accounts • Users to crowdsourcing data • Review charging points • Add/update information Charging point location finder app (2013) • Users find charging stations, start charging, pay with app (Service layered ontop of operator hardware) • Revenue for Plugshare from each transaction Integrated charging and payment solution (2014)
  14. 14. Advantages in the start– Board Members Gregor Matthies Bain Advisory Expertees: Energy and Automotive Heinz Duerr Ex-CEO Deutche Bhan • Investors joined Plugsurfing board • Contact network for fast scale-up
  15. 15. Current Market Plugsurfing: Established Market Plugsurfing: Currently Entering
  16. 16. PlugSurfing - Network Growth 0 5,000 10,000 15,000 20,000 25,000 30,000 10-JUN-14 18-SEP-14 27-DEC-14 6-APR-15 15-JUL-15 23-OCT-15 31-JAN-16 10-MAY-16 NO.CHARGINGPOINTS DATE SIZE OF CHARGING NETWORK PlugSurfing estimates EV charging market value to be €4Bn in 2020. Aims to take 5% cut of it (€100M).
  17. 17. Density of Charging Stations – Central&Suburb
  18. 18. Density of Charging Stations - Highway
  19. 19. PlugSurfing: Value Capture Introduction -> PlugSurfing -> Value Capture -> Competiton -> Future
  20. 20. Value Chain Electricity Generation Electricity transfer EV Charging Customer running out of range
  21. 21. Value Propositions for Key Stakeholders Charging point operator • Larger customer base • Less customer acquisition costs • Bundled payment EV owners in Europe • Single contract • Easy-to-use • Better EV experience EV manufacturers • Make charging easier • Provide data about charging point location
  22. 22. Value Proposition: Customer Better EV experience • Less range anxiety • Less hassle to drive electric vehicle Single contract • No need for multiple agreements • Easy access to large number of chargers Easy-to-use • Smartphone app to find charging spots • Integrated billing system
  23. 23. Value Proposition: Charging Point Operator Larger customer base • More potential customers • Higher usage and more revenue Less acquisition costs • No individual marketing and introduction fees • Eliminates customer acquisition costs Bundled payment • Outsources payment • No need to handle micro transactions • Reduced admin cost
  24. 24. Network Effect More customers Higher charging point usage rate More incentive to charging operators to join Higher charging point availability Better EV experience
  25. 25. Method of Value Capture • PlugSurfing gets 5-20% commission of final bill • Pricing power depends on number of users ( network effects)
  26. 26. What PlugSurfing did well First to recognize problem in Europe Expanded rapidly • Gain users • More charging stations • Minimal capital costs (no hardware) Easy-to-use service • Low barriers to adaption • Make service accessible Initially built database of charging point locations • Early revenue stream to sustain business Network Effects
  27. 27. Competitors Introduction -> PlugSurfing -> Value Capture -> Competiton -> Future
  28. 28. Chargepoint – Connect with users Advantages in mobile application Queuing for charge points Possibility to chat with current charger Graphs for busy times
  29. 29. PlugShare – Share your home charging point Possibility to share personal charging points Mobile application and www-page Main markets in USA and Canada
  30. 30. Individual charging point operators No commission for 3rd party Work as individual provider • Can be part of 3rd party mobile application same time Small charging point networks
  31. 31. Nomadic – Car trailer as charger Battery pack for a car Charge while driving Destination- and home- charging
  32. 32. Competitor mappingProcessIntegration Availability/Density ? Individual Charging Point Operators
  33. 33. Geographical overview Plugsurfing: Established Market Plugsurfing: Currently Entering Other countries with EV Market Share >1% Plugshare & Chargepoint market
  34. 34. Moving forward Introduction -> PlugSurfing -> Value Capture -> Competiton -> Future
  35. 35. Short Term Increase market penetration in existing markets Push for new customer acquisition Geographic focus on Europe
  36. 36. Partnerships • Leverage existing database • Maximize value of services for customers
  37. 37. Surge Pricing – solution for high demand In high demand, costs increase Better rates from Electricity providers After high demand, costs decrease Source: Energy Defence Fund
  38. 38. Customer Acquisition & Retention Combine or Link to Additional Services Targeted marketing Bundling with car sales & services
  39. 39. Competition & Business Model Focus on service, not infrastructure Potential for subscription based model Competitors could present opportunities
  40. 40. Mid & Long Term Focus on Data Charging as a Service B2B Charging Subscription
  41. 41. Data– key to longterm success Strategic Control Data to deliver more value than competitors Product development Subscription Charging as a service New revenue streams Consumer behaviour for OEMs Usage patterns for governments
  42. 42. Charging as a Service • Charging Points are expensive • Lease charging points to home owners, shops, malls, parking lots • Secure favorable rates through cooperation with utilities • Use data for adaptive charging
  43. 43. B2B Subscription Models  Commercial EV-fleets will grow rapidly  Rental companies  Taxi providers  Company fleets  Economical & Easy
  44. 44. Conclusion • Fast growing market • Need to focus on market penetration across Europe to achieve network effects • Develop new partnerships • Maintain control of Data • Explore ‘charging as a service’ model
  45. 45. Q&A