Summary
Local businesses near EV charging stations see an increase in annual income due to customer traffic and spending
EV charging stations create downtime for consumers to visit nearby coffee shops, restaurants, and convenience stores
Study found that businesses near charging stations in California saw an average increase of about $1,500 in annual spending
EV charging stations are reshaping local economies as EV traffic increases across the U.S.
Businesses are encouraged to consider setting up shop near charging stations to take advantage of the economic benefits
Article
The Economic Impact of EV Chargers on Local Businesses
EV charging stations are not just beneficial for the environment but also for local businesses, as a new study from MIT has confirmed. Businesses located within a mile radius of EV chargers have seen a significant increase in annual income, with coffee shops, restaurants, and convenience stores reaping the most benefits. The study found that opening a charging station in California boosted annual spending at nearby businesses by an average of $1,500 in 2019 and $400 between January 2021 and June 2023. This increase in spending is particularly pronounced for businesses in under-resourced areas.
Dwell Time and Consumerism at EV Chargers
When drivers plug in their cars for a few minutes to charge, they also engage in consumerism by spending money at nearby establishments. This "dwell time" is what’s propping up local businesses around EV charging stations. As drivers wait for their batteries to charge, they have the opportunity to visit coffee shops, food joints, and retail stores in the vicinity. This has led to a reshaping of local economies as EV traffic increases across the U.S., with existing businesses experiencing a rise in customers and new businesses popping up in the area.
Adapting Business Models for EV Charging Stations
The study suggests that the gas station and convenience store business model could be adapted for EV charging stations to internalize the positive impact on local businesses. Traditionally, gas stations have been affiliated with retail store chains, allowing owners to sell fuel and attract customers to diversify their revenue stream. EV charging providers could consider a similar approach to maximize the economic benefits of charging stations. This adaptation could lead to the creation of mini mile-wide economic hubs around charging stations.
The Impact on Different Types of Businesses
While not all businesses feel the same economic impact from EV charging stations, coffee shops, restaurants, and convenience stores are seeing the most increase in revenue. These establishments cater to customers who are looking to kill time while using a DC Fast Charger, making them ideal locations for setting up shop near charging stations. Businesses that offer customers the opportunity to relax and enjoy a quick bite to eat or a cup of coffee are likely to see the most benefit from their proximity to EV chargers.
The Future of Business Near Charging Stations
As more charging infrastructure comes online and EV adoption continues to ramp up, the proximity to an EV fast charger may become prime real estate for businesses. Setting up shop near a charging station could create new economic opportunities for local businesses and help establish mini economic hubs across America. Businesses that are on the fence about locating near a charging station should consider the potential benefits of tapping into the consumer traffic generated by these EV charging stations.
Conclusion
In conclusion, the economic impact of EV chargers on local businesses is significant, with nearby establishments experiencing a boost in annual spending and customer traffic. As EV traffic continues to increase, businesses that cater to customers during the "dwell time" at charging stations are likely to see the most benefit. Adapting business models to capitalize on the positive impact of EV charging stations could lead to the creation of mini economic hubs around these charging stations. Businesses that take advantage of the opportunities presented by EV chargers may find themselves in a prime position to attract customers and boost their revenue.
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