EVgo pivots towards owner-operator model

US CPO EVgo will pivot its main business model from non-repeatable hardware sales to an owner-operator role, the firm said on its full year 2023 results call.

The company will focus on owning and operating urban public DC fast charging stations, which it sees as the fast growing segment of the charging market.

"We plan to focus our growth efforts in the near-term on our core owned and operated business, given that this business is most leveraged to EV adoption, is experiencing strong revenue and throughput growth and is expected to generate the highest returns," the CEO says.

As an owner-operator EVgo generates revenue every time a customer charges on its network, unlike a one-time equipment sale.

EVgo says it nearly doubled the number of its sites that have at least six stalls in the fourth quarter. The company is now targeting a minimum station size of six stalls per site and will aim for 8-10 if the site host has space.

Another part of the motivation for the pivot is the difficulty the firm has had in securing funding through the federal Nevi program, which is making the business case for hardware installations at highway locations less compelling.

EVgo improved quarterly earnings by 27pc to a $59mn net loss for the fourth quarter, and is targeting Ebitda breakeven in 2025.

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