EVgo Recognizes Massive Rideshare Growth as Commercial Throughput More Than Tripled Year over Year in Q1

Rhea-AI Summary

EVgo has seen a significant rise in rideshare charging on its public fast charging network, with commercial throughput tripling from Q1 2023 to Q1 2024. Notably, rideshare charging accounted for 24% of the total throughput in Q1 2024, compared to 11% in Q1 2021. On average, rideshare drivers charged 5 times more than retail customers in 2023. EVgo is enhancing its services, including API integration with Lyft, to better serve rideshare drivers. The company collaborates with rideshare firms like Uber and Lyft, which aim for a zero-emission future by 2040, and partners with other light-duty fleets.

Positive

• Commercial throughput tripled from Q1 2023 to Q1 2024.
• Rideshare charging accounted for 24% of total throughput in Q1 2024.
• Rideshare drivers charged 5 times more than retail customers in 2023.
• API integration with Lyft enhances the user experience for drivers.
• Partnerships with Uber and Lyft, which aim for a zero-emission future.
• Discounted charging rates for light-duty fleet drivers.

Negative

• Higher dependency on the rideshare market, which may fluctuate.
• Increase in commercial throughput may raise operational costs.
• Potential risks associated with legislative changes affecting rideshare companies.

Insights

Financial Analyst

EVgo's growth in rideshare commercial throughput is a significant indicator of increasing demand for electric vehicle (EV) infrastructure, which could positively impact its financials. The company reported a threefold increase in commercial throughput year over year, suggesting a strong revenue stream from rideshare activities. This growth in usage from rideshare drivers, who use EVgo's charging stations far more frequently than the average retail customer, implies higher utilization rates and potentially more efficient capital deployment.

The rise in rideshare throughput to 24% of total usage also highlights how pivotal this segment is becoming for EVgo. Given the commitments by rideshare giants like Uber and Lyft to transition to electric fleets, EVgo stands to benefit from sustained and possibly accelerating demand. This trend aligns with broader regulatory moves towards zero-emission vehicles, positioning EVgo advantageously in the market long-term. Retail investors could view this as a positive signal of future revenue stability and growth opportunities.

Market Research Analyst

The reported surge in rideshare usage of EVgo's network underscores a broader market shift toward electric vehicles, particularly in high-usage sectors like ridesharing. EVgo's strategic partnerships with Uber and Lyft, along with the integration of APIs to streamline driver enrollment, reflect a proactive stance in capturing this growing market. Furthermore, the emphasis on fast chargers in high-density locations addresses one of the key barriers to EV adoption: charging convenience.

From a market perspective, EVgo's ability to attract and service a significant portion of rideshare drivers suggests competitive positioning that could deter new entrants. Additionally, the expected increase in electricity dispensed to rideshare drivers points to sustainable growth. For retail investors, it's important to note this trend as it indicates a strong alignment with current EV adoption goals, potentially leading to increased market share and revenue growth for EVgo.

Tech Expert

EVgo's advancements in creating a smoother charging experience for rideshare drivers, particularly through API integration with Lyft, demonstrate the company's commitment to leveraging technology for operational efficiency and user convenience. The ease of enrollment and the availability of fast chargers are significant technological enhancements that can drive user adoption and satisfaction.

Moreover, the company's focus on deploying fast chargers in high-density areas is a strategic move to meet the high turnover needs of rideshare drivers, who require quick and reliable charging solutions. This approach not only supports current demand but also prepares EVgo for future increases as more rideshare drivers switch to electric vehicles. Investors should consider this technological edge as a potential driver of sustained competitive advantage and market leadership in the EV charging space.

Throughput from rideshare accounted for nearly a quarter of all usage on EVgo’s nationwide network in the first quarter

LOS ANGELES--(BUSINESS WIRE)-- EVgo Inc. (NASDAQ: EVGO) (“EVgo” or the “Company”), one of the nation’s largest public fast charging networks for electric vehicles (EVs), experienced tremendous growth in rideshare across its nationwide network, with commercial throughput more than tripling from the first quarter of 2023 to the first quarter of 2024.

When evaluating usage on EVgo’s network, EVgo determined that the average rideshare driver charged approximately 5 times more than the average retail customer during 2023. Rideshare throughput reached 24% of total throughput in the first quarter this year, up from 11% in the first quarter of 2021. As more rideshare drivers transition to driving electric, the amount of electricity dispensed to this group of customers is expected to increase.

“Uber, Lyft and other rideshare companies are taking the lead in driving EV adoption among their large, distributed base of drivers,” said Scott Levitan, Executive Vice President of Growth at EVgo. “EVgo is committed to continuing to deploy fast chargers in high-density locations with great amenities to best serve rideshare drivers on the go.”

An average rideshare driver travels much farther than the average commuter and is more likely to need access to fast charging to quickly power up between rides. Drivers can sign up for EVgo’s charging programs with its partners such as Uber and Lyft at www.evgo.com/rideshare. EVgo has also worked with rideshare companies to create a smoother charging experience for drivers, including an API integration with Lyft to make it even easier for drivers to enroll in the EVgo charging program.

Beyond savings on public charging, rideshare drivers who make the switch to electric enjoy the benefits of lower maintenance costs for the vehicles and higher customer ratings, as reported by Lyft’s 2023 ESG report. In addition to the Company’s rideshare partners, EVgo also partners with other light duty fleets, such as rental companies and municipalities in major metro markets across the country who use EVgo’s public network for their needs. Drivers of these light duty fleets can also access discounted charging rates.

Rideshare companies have committed to an all-electric future, with Uber setting the goal of being a zero-emission platform by 2040¹ and Lyft setting a target to reach 100 million all-time EV rides on the platform by the end of 2025.² This is complementary to efforts by cities and states that have passed legislation requiring all rideshare vehicles that operate within their jurisdictions to be electric by 2030, including New York City’s and California’s Clean Miles Standard initiative.

For more information about the EVgo charging network, visit www.evgo.com.

About EVgo

EVgo (Nasdaq: EVGO) is a leader in electric vehicle charging solutions, building and operating the infrastructure and tools needed to expedite the mass adoption of electric vehicles for individual drivers, rideshare and commercial fleets, and businesses. EVgo is one of the nation’s largest public fast charging networks, featuring over 1,000 fast charging locations across more than 35 states, including stations built through EVgo eXtend™, its white label service offering. EVgo is accelerating transportation electrification through partnerships with automakers, fleet and rideshare operators, retail hosts such as grocery stores, shopping centers, and gas stations, policy leaders, and other organizations. With a rapidly growing network and unique service offerings for drivers and partners including EVgo Optima™, EVgo Inside™, EVgo Rewards™, and Autocharge+, EVgo enables a world-class charging experience where drivers live, work, travel and play.

¹ https://www.uber.com/us/en/about/sustainability/

² https://s27.q4cdn.com/263799617/files/doc_downloads/esg/2023/ESG-2023-Report-Final.pdf

View source version on businesswire.com: https://www.businesswire.com/news/home/20240613905030/en/

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Source: EVgo

FAQ

How did EVgo's commercial throughput change from Q1 2023 to Q1 2024?

EVgo's commercial throughput more than tripled from Q1 2023 to Q1 2024.

What percentage of EVgo's total throughput was accounted for by rideshare in Q1 2024?

Rideshare charging accounted for 24% of EVgo's total throughput in Q1 2024.

How does the average rideshare driver's charging compare to retail customers on EVgo's network?

The average rideshare driver charged approximately 5 times more than the average retail customer during 2023.

What initiatives has EVgo taken to improve the charging experience for rideshare drivers?

EVgo has integrated an API with Lyft to make it easier for drivers to enroll in its charging program.

Which rideshare companies does EVgo partner with?

EVgo partners with rideshare companies like Uber and Lyft.

What are the future goals of EVgo's rideshare partners regarding electric vehicles?

Uber aims to be a zero-emission platform by 2040, and Lyft targets 100 million all-time EV rides by the end of 2025.

What legislative changes are influencing the adoption of electric vehicles in the rideshare market?

Cities and states like New York City and California have passed legislation requiring all rideshare vehicles to be electric by 2030.