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.

1. Creating a Global Network of
Electric Vehicle Charging Stations
Timo Tapio Ristola e0009596@u.nus.edu
Joona Petteri Karjula e0014590@u.nus.edu
Minja Wilhelmina Axelsson e0014448@u.nus.edu
Iivari Joonatan Heikkilae e0014305@u.nus.edu
Tommi Juho Miikkael Karjalainen e0014306@u.nus.edu
Thilo Marcel Braun e0009778@u.nus.edu

2. Introduction to Electric Vehicle (EV)
Picture: http://www.digitaltrends.com/cars/just-plug-in-that-ev-anywhere-wrong-vendor-battles-could-shaft-drivers/

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. EV market has been growing rapidly after 2010
Source: http://www.zsw-bw.de/en/support/news/news-detail/number-of-electric-cars-worldwide-climbs-to-13-million.html
Over 200 000 new
registrations in China

5. In many countries government supports EV's

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. EV Charging cost depends how fast you
want it to be charged
Source: DOI: 10.1109/TPWRS.2010.2049133

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. Introduction -> PlugSurfing -> Value Capture -> Competiton -> Future

10. Problem: multiple contracts

12. Solution: Plugsurfing

13. • Enter payment details once
• Tap to start charging
• Access 25 000 charging points
How?

14. 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)

15. 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

16. Current Market
Plugsurfing: Established Market
Plugsurfing: Currently Entering

17. 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).

18. Density of Charging Stations –
Central&Suburb

19. Density of Charging Stations - Highway

20. PlugSurfing: Value Capture
Introduction -> PlugSurfing -> Value Capture -> Competiton -> Future

21. Value Chain
Electricity
Generation
Electricity
transfer
EV
Charging
Customer running
out of range

22. 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

23. 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

24. 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

25. Network Effect
More customers
Higher charging point usage rate
More incentive to charging operators to join
Higher charging point availability
Better EV experience

26. Method of Value Capture
• PlugSurfing gets 5-20% commission
of final bill
• Pricing power depends on number of
users ( network effects)

27. 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

28. Competitors
Introduction -> PlugSurfing -> Value Capture -> Competiton -> Future

29. Chargepoint – Connect with users
Advantages in mobile application
http://www.chargepoint.com/mobile/
Queuing for charge points
Possibility to chat with current
charger
Graphs for busy times

30. PlugShare – Share your home charging point
Possibility to share personal charging points
Mobile application and www-page
Main markets in USA and Canada
http://www.plugshare.com/

31. 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

32. Nomadic – Car trailer as charger
Battery pack for a car
Charge while driving
Destination- and home-
charging
http://nomadicpower.de/products/

33. Competitor mappingProcessIntegration
Availability/Density
?
Individual Charging
Point Operators

34. Geographical overview
Plugsurfing: Established Market
Plugsurfing: Currently Entering
Other countries with EV Market Share >1%
Plugshare & Chargepoint market

35. Moving forward
Introduction -> PlugSurfing -> Value Capture -> Competiton -> Future

36. Short Term
Increase market penetration in existing markets
Push for new customer acquisition
Geographic focus on Europe

37. Partnerships
• Leverage existing database
• Maximize value of services for customers

38. 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

39. Customer Acquisition & Retention
Combine or Link to Additional Services
Targeted marketing
Bundling with car sales & services

40. Competition & Business Model
Focus on service, not infrastructure
Potential for subscription based model
Competitors could present opportunities

41. Mid & Long Term
Focus on Data
Charging as a Service
B2B Charging Subscription

42. 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

43. 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

44. B2B Subscription Models
 Commercial EV-fleets will grow rapidly
 Rental companies
 Taxi providers
 Company fleets
 Economical & Easy

45. 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

46. Q&A