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

GRA · Oct 15, 2016

Via IEVS: http://insideevs.com/carcharging-ends-first-half-of-the-year-with-nearly-4-lost-for-every-1-earned/

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 The bad news is that the former metric has now been replaced by losing $4 for every $1 in revenue for the first half of 2016.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

I do wonder just how much longer they can stumble on. They have the closest public charging stations to me, and the QC there was out of service for over two months (finally fixed last month). The L2s at the same location see some use, although I have to assume most people have figured out that paying $0.49 (member) or $0.59 (guest)/kWh from the wall is more expensive than buying gasoline, and only the desperate/clueless use them. At least with the QC, your $0.59-$0.69/kWh buys you some speed, although it's even more expensive.

Durandal · Nov 22, 2016

Personally I think that what should happen instead of selling electricity, these companies need to simply sell the service to the business. (We install the charger at your location, the cost is $X,XXX which we spread across 3 years, and a small yearly maintenance fee. Customer plugs in when arriving at your store/shop/etc using their RFID card. We give you a code generation program that prints a barcode on your customer's receipt. When your customer is done with their service with you, they scan the barcode on their phone or at the charger, which then makes the charging free. If the customer does not scan a barcode, then they are charged a fee to recoup electricity costs.)

THAT is the proper business model for these places.

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

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

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