CarCharging Ends First Half Of 2016 By Losing Nearly $4 For Every $1 Earned

OCT 15 2016 BY MARK KANE 7

CarCharging finally has caught up to the pace of releasing timely 10-Q reports, and the numbers are in for both Q1 and Q2 results.

Despite many EVSEs in prime locations, usage (and revenue) for the CarCharging Group is down

Despite many EVSEs in prime locations, usage (and revenue) for the CarCharging Group is down

The good news is that the earlier trend of losing of some $2 for every $1 earned in 2015 has ended.

The bad news is that the former metric has now been replaced by losing $4 for every $1 in revenue for the first half of 2016.

Total revenues amounted to just $1,756,752, which was down more than 21% year-over-year…despite the addition of an extra ~125,000 being added to US roads over the same time, while the net loss hit $6,746,768 (up 37%).

The fundamental problem facing the business (and really almost all for-profit charging networks) is that revenues from “Charging service revenue” are always unable to exceed “Cost of charging services“, but in CarCharging’s case the gap to profitability now seems hopelessly wide.

The question appears only to be when the company will run out of capital, or whenever someone will decide they want to acquire the charging provider.

Q1 Highlights

  • EV charging hardware sales grew 31% from $220,807 for the three months ended March 31, 2015 to $290,205 for the three months ended March 31, 2016
  • Revenues from network and transaction fees increased 1.5x from $34,524 for the three months ended March 31, 2015 to $89,085 for the three months ended March 31, 2016
  • EV charging service fees remained flat from $389,785 for the three months ended March 31, 2015 to $384,470 for the three months ended March 31, 2016
  • Grant and rebate revenue decreased from $646,185 for the three months ended March 31, 2015 to $99,780 for the three months ended March 31, 2016
  • Total operating expenses decreased 45% from $3.81M for the three months ended March 31, 2015 to $2.08M for the three months ended March 31, 2016

Q2 Highlights

  • EV charging hardware sales grew considerably by 60% from $405,979 for the six months ended June 30, 2015 to $650,374 for the six months ended June 30, 2016
  • Revenues from network and transaction fees increased nearly 80% from $116,684 for the six months ended June 30, 2015 to $208,331 for the six months ended June 30, 2016
  • Total operating expenses decreased 56% from $7.20M for the six months ended June 30, 2015 to $4.00M for the six months ended June 30, 2016
CarCharging Financial Results – For H1 2016

CarCharging Financial Results – For H1 2016

Categories: Charging

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7 Comments on "CarCharging Ends First Half Of 2016 By Losing Nearly $4 For Every $1 Earned"

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How many charging connection points (public DC FC and AC J1772) does CarCharging currently service / have in its network?

In the greater Phoenix area most of the Blink CarCharging L2 and DC Fast Chargers don’t work. They can’t earn money when they are out of service.
They have 53 DC Fast Chargers and 523 L2. Most screens can’t be read. Many don’t read the RFID card and most put out less than a 5 kW rate.

If the cost is so high ($0.59/kWh for DCFC) so that using it cost more than 12 MPG gas car, of course people will avoid using it.

And here we go again.

I’ve said many times that the business model for commercial charging simply doesn’t work. It will not be able to compete with gas prices any time soon. For now, Tesla is able to hide the fundamental flaws with this market in the price of their cars, but this won’t last forever.

There were many commenters in the recent VW/ChargePoint article who expressed little sympathy for ChargePoint, and there are similar numbers of people who insist that automakers (e.g. GM) must build out charging networks in order for the next generation of BEVs to be viable. But until someone solves the business model for such a network, it won’t happen… and so we will always need another fuel (likely gasoline or H2) to supplement battery-electrics.

Cost per mile

*******

Hydrogen car that consumes 1kg per 60 miles driven:

25 cents per mile = $15 per kg at the pump divided by 60 miles

*******

Just-Drive-The-Prius(tm)

6 cents per mile = $2.50 per gal / 40mpg

*******

2012 Toyota RAV4 EV

3 cents per mile charging at home with 12 cent per kWh

6 cents per mile for NRG /eVgo public DC charging

*******

Here’s what NRG really costs for that average 1250 mile per month / 15,000 per year traveler:

$0.06236 per mile

Assume 3 miles per kWh consumption (very generous for a LEAF):

Assume 40kW average charge rate.

Therefore:

1250 / 3 = 417 kWh burned per month

417 / 40 = 10.5 hours charging per month

$6 per hour (10 cents per minute NRG rate) * 10.5 hours = $63

$77.95 = $14.95 monthly charge + $63 billing

$0.06236 per mile for NRG /eVgo use only

EV Charging in urban areas will become more and more of a loss, as the more affordable 100+ and 200+ mile EVs are launched. A rational person would never buy an EV with less than enough range for their daily round trip. With that being the case, after the novelty of using a public charger is over, along with the free charging period ending, those consumers will utilize the less expensive, more convenient charger at home. I think the false expectation of charging companies were based on the early adopters buying EVs that did not meet their daily commute range, so they had to depend on the public charging work-around, but only until 100+ or 200+ EVs are available. But people are creatures of habit, and many struggle to break the gas station habit, even when they have a charging station/gas station in their own garage….at half the price and no waiting. Whenever I see anyone at a public charger in the city, it just means they made a bad purchase decision. Too little range for their daily commute, or just forgot to charge the night before. Wireless charging at home on top of 200+ mile EVs = the death… Read more »

As an apartment dweller with two EV’s, I can speak from experience that Blink/CarCharging is always a last resort. They are expensive, and unreliable.

However, we have had good experiences with EVGo and ChargePoint over the past 2 years.

Fast charging will eventually become viable in densely populated areas. *Especially* with longer range EVs opening ownership up to younger drivers living in condos or apartments such as here in Addison, TX.

There are already dozens of EV drivers living and working here. So the EVgo station near me is consistently busy, while ones in more traditional suburban neighborhoods might go unused for days.