All customers providing commercial EV charging services utilize a platform known as the back office. This platform serves as the central hub for operating charging stations, handling tasks such as support, authorization, billing, and energy management. The majority of market players opt for one of three approaches: developing a proprietary platform in-house, purchasing an existing platform from the market, or utilizing a Software as a Service (SAAS) platform. Each of these approaches comes with its own set of strengths and weaknesses but what is the best approach?

EV charging backend growing market requirements

The era of relying on an OCPP driver providing CDRs (charging data records), basic pricing plans with an operational console along with an app for initiating transactions, has passed. Today, a competitive EV charging backend is required to provide complex pricing mechanisms, accommodate various tiers of customers (Charging station operator, Site owner, locations…), and manage billing processes involving the integration of diverse payment gateways (e.g. Stripe, Payter, TRX, among others). Next to that, we have to integrate energy management protocols such as OSCP or OpenADR, assimilate different eRoaming protocols (such as OICP, OCPI) and hubs (e.g. Hubject, Gireve), and ultimately merge all of this seamlessly into a company’s operational environment (e.g. ERP integration). This requires knowledge and a state-of-the-art EV platform.

EV charging backend market models

1. House-made development: This entails the necessity of recruiting or establishing a comprehensive IT and product team to fabricate a competitively viable platform.
2. Purchasing an existing market solution: These pre-constructed solutions are retailed by companies specializing in commercial EV Charging backends, often offering room for certain customizations.
3. SAAS solution: This involves acquiring a fully prepared and hosted market-ready backend and application through a licensed arrangement, typically based on charging points with system integrations facilitated by APIs.

Make, buy, or lease an EV charging software? Let’s compare!

Here is a short estimated comparison for 1’000 to 10’000 charging points with development costs that includes all charges for a complete charging service setup: (Analysis, Development, testing, White labeling, configuration…). The yearly management costs include hosting (server), service support, and market adaptations (new functionalities).

The optimal approach depends on your company’s structure, strategy, and timeline for achieving your objectives. Based on this analysis, it appears that the most suitable model would be to begin by utilizing a competitive SAAS solution until you have reached a certain number of charging stations (e.g., 10,000). At that point, it could become financially viable to develop your own platform. However, this decision goes beyond a mere ‘make or buy’ cost analysis. Establishing your own platform would necessitate assembling a comprehensive team of market experts, analysts, and developers, solely to create a standard version. This expertise is readily available with a SAAS solution, and additionally, you gain the flexibility to customize your platform by integrating key systems (e.g. ERP for invoicing, ticketing system, CRM…) with APIs.

What if you could customize and adapt your model progressively?

It’s evident that every emerging EV charging business undergoes a learning curve. By commencing with a SAAS solution, you can create an attractive product, pricing, and distribution model, and subsequently refine the approach on a step-by-step basis by integrating key applications. This is possible through a modular and evolutive platform such as Saascharge with its API catalog.

At Saascharge, we have noticed that around 30% of customers (including CPOs or EMPs) tend to start by gradually integrating essential business applications. Then, they explore the possibility of developing more significant Smartphone Apps or other user-facing applications.

The benefit to invest and develop in what truly matters

The foundation of a great EV charging solution lies in delivering reliable and cost-attractive charging services. There are core service elements that you can hardly differentiate from other EV charging software. It’s all about specifics! For example, integrating with an external Energy Management System (EMS) for load management or linking with an ERP to automate invoicing for fleets, rather than relying on standard ‘credit cards’ payments. This holds greater significance than attempting to replicate existing features. You can also build specialized business applications for hotels, Fleets, Real estate management or Retailers…

Start Your EV Charging Journey with a Competitive SAAS Model and Evolve through Selective API System Integration

Despite weighing the pros and cons of various models, a backend inherently offers a range of shared functionalities. Initiating your journey today using a competitive SAAS model with API integration is a pragmatic approach to adapt your model as you grow (e.g. more EV Drivers, charging points…). This is an opportunity to create a unique EV charging product built upon your proprietary applications! Make or buy an EV charging platform? Don’t compromise, let’s get the best of both!

Customers Re-fueling their car after shopping has become an after-sales standard which is why many retailers operate gas stations. However, with the growth of electric vehicles, they have to think differently! EV charging is more than just a “potential full tank” after shopping; It is a chance to attract new customers, build loyalty, and valorize a forgotten asset; Car parks! This by just installing a few EV charging stations per store and – crucially – connecting these stations with their loyalty management systems to offer the best “shop and charge” experience.

Why is EV charging so interesting for Retailers? 

There are many benefits to provide EV charging services next to the obvious market transition from gasoline to electric.

1. Perfect location

Retailers have the 3 most critical success factors to make an EV charging network successful:  Locations (the stores), Drivers (the shoppers) and an Occupation while charging (shopping)

2. Attracting more customers at stores

In today’s online delivery era, having new reasons to get consumers onsite for an in-store experience is more important than ever (10 times more sales than online according to entrepreneur)

3. Generate new revenues with EV charging

Sales start at the parking, with $10 to $30 revenue per charging session!

Make or buy: Shall retailers provide or outsource EV charging services?

It is a legitimate question since electric vehicles represent only ~2% of cars on the road and specialized EV companies are willing to install chargers at “no costs”. These outsourcing models similar to a “Vending machine” proposition can be attractive if we manage a few drawbacks:

• Direct relationship with consumers: Managing EV drivers offers the benefit to engage and push targeted cross-marketing actions (product advertising, promotions…)
• Full access to charging data: Direct access to charging data (Who, when, how long, how much…) is a necessity if Retailers wants to develop their own “shop and charge” strategy
• Charging income model: Whether it is a revenue share or commission model, getting access to $10’000 to $50’000 annual income per charger shall not be underestimated

Now if retailers can operate gas stations, providing EV charging as charging station operator and eMobility provider shall not be much of a challenge. Especially as they can mandate engineering companies to install and maintain chargers while using a white label EV cloud-based platform (e.g. Saascharge) to operate and commercialize charging services (authorization, eRoaming, billing…).

What kind of EV charging strategy can retailers adopt?

Offering EV charging services while shopping is only a beginning. The real opportunity is to steer EV drivers to selected shopping sites. For this, three different aspects need to be considered:

• Integration of EV charging with loyalty and store data
• Development of commercial strategies to attract and stimulate EV drivers
• Establishment of key partnerships to valorize your EV charging assets

1. Use the power of data

EV drivers in need of a charge require a smartphone application, RFID cards (e.g. retail loyalty card) or in-car systems (Plug & Charge) to find and start charging sessions. These systems collect valuable traffic data (Consumer ID, location, usage, time, state of battery….) that can be combined with consumers and real-time retail data (e.g. store frequentation, promotions, inventory…) to create a powerful customer journey:

The principle is to feed these charging, loyalty and inventory data with advanced recommendation engines, such as reinforcement learning algorithms to push the right product to the right customer at the exact location!

2. Develop a commercial strategy to engage with EV drivers

This is about how Retailers can engage with the “Shop and Charge” experience to increase retention and convert occasional shoppers into regular ones.

A. Attract EV consumers by offering better charging rates

Segment customers by offering members better-charging conditions (e.g. $0.20 per kWh for members instead of $0.30 per kWh for guests…) and pushing guests to sign up for loyalty cards.

B. Stimulate EV driver sales with circumstantial offerings

Imagine a regular shopper driving home with low batteries and looking for a charging site on the store application. We now know who needs a charge; For example, a young professional with a shopping history indicates that she is an amateur of “fine food”. This information enables retailers to push promotions for fresh Italian pasta at a store located on their way home! On top of that, they can offer further promotions on “sell-by date” vegetables yielding better inventory turnover and reducing waste.

C. Make consumers stay longer with EV charging

Charging an electric vehicle can take from 20 to 120 minutes depending on the type of vehicle and charging stations. This is a great reason to motivate customers to get a longer shopping journey by upselling in-store services. Let’s take the example of a family getting a shopping break while charging their car. The store could offer coupons for restaurants or coffees to extend their stay. This is possible as we know who is charging (loyalty member), the level of the battery (state of charge) and shopping habits (e.g. coffee).

 3. Valorize your EV charging service by creating new partnerships

The number of stores that Walmart covers in the US (5’000), Carrefour (5,592) in France and Tesco in the UK (4’008) could make them among the largest EV networks by just adding 3 to 5 chargers per location. This is an ideal basis for partnerships as:

• Charging Point Operator (CPO) offering charging access to other EV market players such as car manufacturers with dedicated promotions to attract drivers of specific brands (e.g. Ford, Toyota, VW…).
• eMobility service providers (EMP) giving loyalty members access to other EV charging networks with eRoaming. This with preferential “charge and leisure” offers (e.g. wellness, golf club, hotels…) thanks to the large group of consumers they represent.

Going full EV is the only way! Start now, collect data and build up your future!

Some Retailers have already started providing charging services to follow a trend or for image reasons but being present isn’t enough! We believe that the real opportunity for Retailers is an end-to-end “Shop and charge” strategy! This is a unique chance to interact with consumers from home to shopping destinations.

The adoption and usage of electric vehicles is global! That is why from the start at Saascharge, we had to think internationally by providing EV charging platform solutions to clients in North America, Europe and South-East Asia. This has led to interconnect our EV platform to 250,000 charging points with Hubject, store customer data in different locations and build a local presence in Europe.

Getting a structure in place to support international development

Now, we have the pleasure to announce the creation of Saascharge international GmbH, in Zürich Switzerland with the mission to support eRoaming financial clearing services globally. This neutral location in a major financial center next to the Crypto Valley is the ideal place to cover the European Union, United Kingdom and Asian markets.

This positive developments will support 3 objectives to promote EV charging: Openness, innovation, and scalability.

1. Openness: Driver can access any charging stations

Availability, availability, and availability: Our mission is to ensure that any charging stations can be available to any EV drivers by:

• Interconnecting client charging networks to any other EV charging networks
• Compatible with any access type; Smartphone, Plug & Charge (ISO 15118), RFID, Credit card readers…
• Integrate to customer systems environment (energy management systems, ERP for invoicing) by providing a wide range of APIs

2. Innovation: Let’s make EV charging attractive

EV charging adoption can only become successful if it is convenient for EV drivers to use and attractive for all market players. From the EV driver, the charging station owner (e.g a restaurant), network providers to eMobility providers, everyone must benefit from EV charging. That is why we build innovative products to:

• Stimulate EV charging by promoting locations with Geo-Advertising (Your charging station must be known), offer smart pricing strategic benefits for club members, residents or other organisations
• Make EV charging convenient by simplifying payments and revenue sharing across market players to push investments
• Demand response with dynamic pricing to motivate drivers to charge in relation to grid capacity

3. Scalability: Optimise service and costs

Scalability of our EV charging platform is an essential part of our global strategy. The multiplication of clients and charging points across the world increases the quality of service by sharing developments and optimise costs with our cloud-based approach.

Finally, let’s make it convenient

Before Covid19, travelling around the world has never been as easy, pack a bag, get a credit card and the world is yours! This is possible because of user convenience and benefits for all parties (user, shops, banks). That level of convenience is what we should expect by travelling with an electric vehicle.

At Saascharge, we are working hard to make EV charging attractive for YOU and your partners.

Cars are back on the road! It’s time to speak about the rising Demand for Public EV Charging Stations in America, which is the title of the next happy hour organised by Women in Cleantech and Sustainability and Marin Energy & Transportation Group.

What are the biggest challenges of EV charging in the US? How does public connected charging stations work? Who should lead this transformation? These are the topics that Richard Albrecht, Founder & CEO will have the opportunity to address in this session!

Get seated, prepare your refreshments and join us Thursday, July 16, 2020, at 5 pm PT for this Virtual Happy Hour! Please, book your event now! The event has a small entry fee but as friends and partners of Saascharge, you can benefit from 30% discount with this code. Please contact us for further information.