How Scale × Margin × Differentiation creates profitable EV charging market leaders

One burning question keeps CPOs up at night: How can we optimize our business for maximum profitability?

During his keynote at the Nordic EV Summit in Oslo, AMPECO’s CRO, Stefan Ivanov, cut to the chase with insights gathered from working with charging network operators across 65 countries. The verdict? EV charging profitability isn’t ethereal; it’s mathematical.

The simple (but hard to achieve) profitability equation

The formula for successful, profitable EV charging businesses begins with two essential factors: scale and margin. But true market leadership requires a third critical element: differentiation.

While the formula appears straightforward, the real challenge lies in achieving all three variables simultaneously, something that most CPOs struggle with. Let’s break down the five critical challenges standing between charging operators and market leadership.

Challenge #1: Low network uptime

The data is merciless. One in five EV drivers won’t return to a charger that failed them. Each offline station is a problem that burns your bottom line, costing you customer loyalty and revenue.

This challenge is particularly vexing because it requires synchronization across the entire EV charging ecosystem. Hardware compatibility is crucial as EV chargers, payment terminals, and parking barriers must function reliably 24/7. Behind the scenes, the software platform must process thousands of commands without hiccups. 

Connectivity forms the critical nervous system of your EV charging network, where reliable pathways must seamlessly transmit real-time data between chargers, payment systems, and authentication services 24/7. When this invisible lifeline fails, you lose not just transactions but customers for life.

Challenge #2: Low network utilization

Perfectly functional chargers sitting unused are profit killers. Each idle hour represents missed revenue opportunities, silently draining profitability while fixed costs continue to accumulate.

The solution to this drain differs depending on your business model. Public charging operators face the constant battle of maximizing kilowatt-hours delivered through dynamic pricing, roaming agreements that tap into wider driver networks, loyalty programs that encourage repeat visits, and expanded payment options to eliminate every possible friction point for potential EV drivers.

Private EV charging, on the other hand, is about creating predictable, recurring revenue streams. Success means offering tailored solutions to specific segments such as residential communities, workplace settings, or commercial fleets. Smart charging capabilities that integrate with building management systems create value beyond simple electricity delivery. Dynamic load management allows property managers to install more chargers without expensive electrical upgrades, while sophisticated corporate billing solutions transform charging from an individual expense into a managed corporate benefit.

Challenge #3: Poor user experience

Today’s EV drivers expect a cohesive, seamless experience across all charging touchpoints—mobile apps, RFID cards, Plug & Charge protocols, credit card terminals, web portals, and roaming networks. When these systems don’t work together flawlessly, friction prevents recurring revenue. Market leaders are capturing customer loyalty by delivering fully integrated experiences where each interaction feels like a natural part of one unified system, meeting the sophisticated expectations of modern drivers.

Challenge #4: High transaction costs

Often overlooked until reaching scale, transaction costs silently erode EV charging profitability as CPOs face unnecessary payment processor fees and provider markups on every transaction. AMPECO’s analysis reveals the dramatic impact of even modest optimizations. A 2.5% cost optimization can boost gross profit margins by a remarkable 17.8%. In an industry where margins are already razor-thin, these seemingly minor improvements represent the critical difference between sustainable profitability and the continuous need for capital infusions.

Challenge #5: Lack of differentiation

Here’s the uncomfortable truth: Solving these first four challenges is the baseline for survival in this industry.

The key to becoming a market leader lies in addressing the fifth challenge: creating meaningful differentiation. This is what makes customers consistently choose your charging network over competitors.

True differentiation requires owning your brand identity completely, seamlessly integrating charging with your existing services, and creating tailored experiences that reflect your unique value proposition.

We often hear two conflicting concerns from CPOs: “The EV charging business is too complex and we cannot handle everything ourselves!” Conversely, “It’s not cheap, but owning our differentiation is why we’re building our own platform!”

Both perspectives miss the crux of the issue: You can’t outsource what makes you different. Yet building everything yourself often leads to prohibitive costs and a slower time to market.

There is a better way

The right EV charging software partner doesn’t force you to choose between control and efficiency. Instead, they provide:

• An industry-leading platform with unmatched extensibility
• Full ownership of your brand and your data
• Complete fee transparency without hidden costs
• Seamless third-party integrations to enhance your service offering
• Cost-efficient partnership terms comparable to industry giants

This approach enables ambitious companies aiming for market leadership to focus on building their differentiation while leveraging proven EV charging management software.

The time to act is now

Here’s the catch: It takes 1-3 years to define and build meaningful differentiation. To be a market leader by 2030, you need to start now. The future belongs to CPOs who successfully combined scale, margin, and differentiation. It belongs to those business leaders who create distinctive brands and seamless experiences that customers actively choose.

Will your charging business merely survive… or will it lead?