By M. Marin
Recent rebranding as mPower communicates focus on charging stations / consumer engagement
mPhase Technologies XDSL is developing an electric vehicle (EV) charging network and consumer engagement platform branded as mPower EV+. The company’s ecosystem combines EV charging with consumer engagement tools expected to expand the reach of each charging station location, with the goal of creating additional store traffic for retailer customers and cross-promoting a growing suite of products and services.
XDSL anticipates generating several different revenue streams from EV charging station operators, retailers and consumers. Management believes its platform contains the broadest software content of any EV charging company currently providing services and believes this will provide a key competitive advantage.
XDSL is building on a strong existing revenue base; the company has a roughly $32 million in existing annual revenue. Revenue from new growth initiatives is expected to come on stream beginning in FY 2023. As the company introduces new services, technologies and products, XDSL expects consolidated revenue to transition to a higher margin mix over time.
The platform will enable retailers to offer push advertising and attract store traffic and enable travelers to customize their travel experience. The initial phase of the EV+ roll-out will focus primarily on EV charging and consumer engagement. The company also has a number of other potential revenue streams under development.
Importantly, in 2021, global EV sales appear to have accelerated, representing about 9% of the global new-car market in 2021, up from 4.1% in 2020 and 2.5% in 2019, according to industry data. Favorable government policies, including subsidies, improving EV performance and growing consumer focus on sustainability are key drivers.
As EV adoption continues, the number of charging stations is expected to continue to expand. According to the DOE, “EV charging continues to experience rapidly changing technology and growing infrastructure.” Even many existing gas stations are adding electric charging equipment in order to position themselves for the anticipated uptick in EVs. The Biden administration has a stated target of constructing a national public charging network of 500,000 ports by 2030.
Focusing on cross-selling a growing suite of products, services, technologies
Concurrently, XDSL is expanding its footprint by focusing on markets where it can create a concentration of EV charging locations to leverage the proximity-based characteristics of its mPower EV+ ecosystem. XDSL recently began signing agreements that fit this strategy, including agreements to install the platform at stations in Illinois, Virginia and Florida. In all, the company has a pipeline of more than 30,000 locations and plans to gain new sites via two different sales channels.
The company’s goal is to focus on markets in which it can cross-sell its growing suite of products, services and technologies. By early 2023, XDSL intends to have a multi-state footprint of more than 10,000 mPower locations. The company is engaged in discussions with EV charging manufacturers, microgrid companies and automotive OEMs to support this ambitious goal.
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