More US Fuel Retailers are Opting to Own, Operate EV Chargers at Their Sites
More retail fuel chains are choosing to own and manage electric vehicle charging stations rather than contract with third-party providers in an effort to attract new customers and cash in on higher demand, industry sources said.
While the federal tax credits for buying an EV expire at the end of September, retail fuel companies believe that having the ability to set pricing and put their brands on EV chargers complements their existing liquid fuel operations and will attract consumers who will likely spend more time to recharge and make more purchases at their convenience stores, EV strategists said.
Most retail fuel and c-store operators several years ago began outsourcing their charging operators to large providers like ChargePoint and EVgo, which handled such issues as connecting to the power grid, dealing with changing rate structure and ensuring that chargers were operational—tasks that could prove daunting for conventional fuel retailers.
With EV ownership projected to rise over time in the U.S. even without government tax support, more retailers are planning to begin offering chargers, a strategy that would allow them to develop expertise and operate the units to maximize profits.
Global Partners—a fuel and c-store chain that owns, operates and supplies more than 1,700 locations in the Northeast, Mid-Atlantic and Texas—entered the EV charging business by contracting the service out to third-party providers like Electrify America.
The company, however, is now actively managing charging infrastructure at its sites to ensure the quality of the EV customer experience, something it considers is as important as the in-store experience, James Cater, Global’s senior director of sustainability, strategy and innovation, said.
Global wants to market fuel to meet customer demand regardless of whether it’s measured in gallons or kilowatt-hours, Cater, who led a utility’s EV infrastructure programs, before he joined Global in 2022, said in an interview. “We don’t rent out the pumps, right? We own that experience both in the forecourt and in the c-store. So, why not if you have the capability to also own the experience for the EV charging sessions,” he added.
Retailers that partner with third-party providers essentially lease out their retail space and in return receive a fixed rent, but forgo the opportunity to profit from the charging business as outside providers handle everything, including price setting and receiving payments directly from consumers.
Fixed Income vs. Profit Opportunity
EV drivers are attractive customers for fuel retailers because they usually have higher average disposable income and typically spend 20 minutes to 30 minutes inside the store, where margins are often better than those on fuel sales, Cater added.
Charging revenue at Global sites so far has met or exceeded expectations, even without taking into account in-store sales to EV drivers, and many of them bring in new customers, he said.
Cater said one of Global’s sites is frequented by Uber drivers, who tend to charge their vehicles twice a day. Cater said fuel cost per mile is lower for EVs compared to gasoline vehicles, which is key in the highly competitive rideshare business.
Global currently has seven retail EV charging sites, with half a dozen under construction and another dozen in the planning stage. Cater said the company is being “very selective” in installing EV chargers, focusing on those sites where it expects the highest demand.
When it comes to EV deployment strategy, Love’s is aiming to leverage its 61 years of experience as a retail fuel provider, according to Kim Okafor, the company’s director of strategic growth and zero-emission solutions. The company has more than 650 travel stops and c-stores in 42 states.
Love’s, which began offering company-operated chargers in 2017, allocates space for chargers at all new retail sites so it can quickly partner with local utilities and install enough charging capacity to meet expected future demand.
Okafor said it is important that Love’s EV charging dispensers are always available and working just like the gas pumps and that customers can raise any issues directly with store employees. She added that it is also important that chargers are placed under the station’s canopy, something she said she learned the hard way when she stood in the rain to plug in and pay for a charging session during a road trip.
“That’s why ownership of the charger matters. We don’t want to have it just like having a vending machine,” something that the company does not have control over what kind of product is provided, she said.
Love’s has more than 100 chargers, including both DC fast chargers (Level 3) and AC chargers (Level 2) at nearly 40 sites in 14 states, and is planning to add new fast chargers through 2026.
DC fast chargers typically offer an 80% charge for most EVs in under 20 minutes, but cost significantly more to install. Level 2 chargers are relatively slower, reaching the same charge in hours or overnight and are more popular at homes, offices and shopping malls, where EV owners tend to spend more time.
Fuel retailer Pilot said its fast-charger network, which it is building with General Motors and EVgo, is available at more than 200 Pilot and Flying J travel centers across nearly 40 states. Pilot’s long-term goal is to provide fast chargers at up to 500 of its more than 900 U.S. sites.
Marcy Bauer, EVgo’s senior vice president of deployment, said the company’s “eXtend” program allows a fuel retailer like Pilot to set prices and own and brand the chargers. In return, the retailers pay EVgo a fee to install, manage and maintain the equipment.
Some retailers prefer to own the assets so they can change prices to drive customer traffic in their stores and incorporate EV charging into their loyalty programs, Bauer said, adding that non-fuel retailers often prefer to just offer the service and avoid the hassles of running and maintaining them.
Chargers Seen as Good Fit at Fuel Sites
But not all large regional fuel retail chains are following Global and Pilot’s playbook and are expanding EV charging at their sites by contracting out to third-party providers.
Retailer and c-store operator Wawa partnered with Ionna to add Ionna-branded EV chargers to its sites. And retailer Sheetz late last year said it will partner with Ionna on 50 fast charging sites at company owned stations in the Midwest and East. Ionna is owned by eight global automakers, including GM, Stellantis and Toyota, and aims to add more than 30,000 U.S. fast charging points by 2030.
Both Wawa and Sheetz also host some of Tesla’s more than 70,000 fast chargers that are owned and operated by the EV maker.
David Failkov of NATSO, a truck stop and travel center industry group, said it is logical to put EV chargers at retail stations that motorists, regardless of what kind of fuel they are buying, know and trust.
Industry data released in August showed nearly 1 in 10 new U.S. vehicles sold were EVs as buyers raced to take advantage of the $7,500 tax credit for buying new EVs before it expires on Sept. 30. The credit had been scheduled to run through 2032, but Congress this year voted to end it.
Still, the International Energy Agency projects that the number of EVs on U.S. roads will more than double to 2.7 million in 2030 from 1.2 million this year.
The Transportation Energy Institute’s most recent Charging Analytics Program data showed that the number of public DC fast charging sessions in the U.S. increased six times to about 12 million in June from just 2 million in July 2024. The organization also said the number of fast chargers expanded nearly five-fold to 50,000 over the same period.
Rapid growth of public fast chargers sparked by the $7.5 billion National Electric Vehicle Infrastructure federal grants created under the 2021 Bipartisan Infrastructure Act should also reduce range anxiety for potential EV buyers. Other benefits of EVs include higher energy efficiency, less maintenance and better handling from instant torque generated by electric motors.
“If EV adoption is going to increase over time, why would you as a retailer just collect rent and not benefit from any of that upside,” Cater asked.
–Reporting by Frank Tang, ftang@opisnet.com; Editing by Jeff Barber, jbarber@opisnet.com
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