From Gas Pumps to Chargers: How Gas Stations Can Flourish in the EV Era

The electric vehicle (EV) revolution is reshaping the transportation landscape, with EV adoption projected to surpass 50% of new car sales in the U.S. by 2030. The oncoming shift in the way vehicles refuel represents an inflexion point for gas stations. The gas station business model is long established, and the EV transition is the biggest disruption gas stations have faced to date.

“Disruption” is a word that often brings negative connotations, but the EV transition is a significant opportunity to capitalize on a new form of fueling that brings longer dwell time and higher fuel margins. Gas stations must adapt to this shift by integrating fast and reliable EV charging infrastructure to remain competitive and profitable.

There are 150,000 convenience stores in the United States. 81% of those stores sell fuel, selling 80% of the motor fuel that is purchased by American drivers. 60% of the 150,000 stores—90,000—are called “independent dealers”.

These individual proprietors have long been dependent on a certain type of vehicle refueling for their business model to work: offer up gas pumps to bring in drivers and then sell those drivers various wares inside the store. Margins on gasoline were long ago reduced to very little—typically a net profit of only a few cents per gallon—meaning in-store sales have been the primary source of profit for these businesses. 

Now, the transition to electric vehicles threatens this long-established business model. Electric vehicles refuel in a much different way than their internal combustion counterparts. People can charge their cars at home or the office; this is where more than 80% of charging takes place. The ability to charge a car where it is parked means less of a need to stop at a third destination—say, a gas station—to refuel one’s vehicle. 

Not everyone, however, has the luxury of their own garage or a forward-thinking employer that equips their parking lot with ample EV charging. But lacking either option should not be a deterrent to buying an electric vehicle. Into this charging void steps the gas station. Already well placed and front-of-mind for people thinking about where and how to refuel their vehicle, gas stations can and must play a critical role in America’s charging infrastructure buildout. 

The shift to EVs should not be viewed as a threat to gas station viability, but instead a major opportunity to deliver greater profits both “at the pump” and in the store. 

The Shift Toward EV Charging: A Strategic Business Move

Why Gas Stations Should Lead in EV Charging

• Gas stations already have prime real estate and established consumer traffic, making them ideal locations for EV charging hubs.
• Retailers like Circle K, Shell, and BP are launching their own EV networks, recognizing that charging will drive in-store revenue.
• New companies (EVGo, Francis Energy, EVCS) are competing for premium locations, but gas stations still have a unique customer experience advantage.
• The first generation of network operators struggled with non-profitable models, but gas stations can succeed by integrating charging with retail sales. By transitioning in a balanced approach, this can give them an stronger advantage.

However, simply installing a DC fast charger is not enough. The business model, infrastructure, and customer experience must be optimized to ensure long-term success. 

This piece outlines the key challenges, opportunities, and strategic solutions for gas stations looking to transition into profitable network operators.

Design and Hardware

A well-planned EV charging site is more than just hardware. It must be designed for efficiency, high utilization, and a seamless customer experience. The vehicles will be parked for 20- to 40-minute periods, which changes things in terms of layout. Queues need to be considered for peak periods of utilization, like Thanksgiving or Christmas travel periods. 

• Traffic flow and accessibility: Prevent bottlenecks between fuel pumps and chargers by adding dedicated EV lanes and clear signage.
• Scalability and modular expansion: Install scalable infrastructure to add more chargers as demand grows.
• Roadside sign: Make sure drivers are aware of the charging option now, and show live prices and availability.
• Upgrade your store: Drivers will be at your store for longer. Seating, nice lighting, and more food options will create a more pleasant experience. 

Selecting the Right Hardware

This is one of the most important decisions you will make early on in your EV charging journey. When selecting hardware, you need to optimize for:

• Trusted brand and healthy business: The charging industry can be volatile with companies going bankrupt. It can be hard to know who you can trust to be a long-term partner, but ask your peers, do your due diligence, and make the most informed decision possible. 
• High quality: Visit some other charging sites and see how it is performing after a few years. Ask the site manager if they are happy with their hardware selection.
• Great user experience: Configurable screen, easy to use cables. 
• Fully OCPP 1.6 compliant.
• OCPP 2.0.1: This is the future-proof standard the industry is moving towards. While not yet widely adopted, it’s important your hardware manufacturer is working on all the modules. 
• SLA: Can they provide service and spare parts needed in a hurry? Chargers will inevitably break or be vandalized. You need to be able to count on your hardware provider to fix it ASAP. 
• Price: It will be tempting to go for the cheapest route, but don’t optimize for this short-term. It is a large upfront investment but you need high quality units that will last 5 to 10 years. 

You do not need to buy everything in one package. Hardware manufacturers will often try to include their own proprietary software, but features like load management, payment terminals, or receipt systems should all be handled by your software provider. Be sure to find a hardware manufacturer that is solely dedicated to building and maintaining the best hardware. 

Monta has more than 25 million historical charging sessions, with around 2.5 million monthly. With this data, we have deep insight into the performance of various models. 

We share the data on hardware performance monthly in our list of supported charge points. We use this data to collaborate closely with manufacturers to push our industry toward better performance. 

Load Balancing

There is a common misconception that massive grid upgrades are always required. You do not need to acquire grid allocation—kw/amps—to be able to constantly charge on full speed.

Electric vehicles only charge with a peak load for a portion of the session (heavy duty vehicles will charge with a higher load average). Additionally, your connectors will rarely be plugged in at the same time. For those few times when your site is very busy, however, it’s important to have a great load balancing setup to reduce the cost of buying grid allocation, and maximizing output.

Dynamic load balancing is the term used to describe the algorithms you need to manage your site at busy times. You might need to have a scheduled limit in place to reduce load at certain times of day.

If you are sharing load with some other assets or buildings, you can consider an external meter to provide readings to optimize further.

Don’t let 2035 hypothetical charging capabilities be the enemy of what works today

Charging providers and hardware manufacturers often think the biggest and fastest charger is necessary for a site. With the fastest chargers—say 350 kW—you can “future proof” your site. The reality is most electric vehicles on the road cannot charge at that speed, and you can establish your site with slower chargers.

We handle about 300,000 DC charges a month on the Monta network, and regardless of charger speed capacity, the average charging speed is about60 to 65 kW, with average peaks at around 85 to 95 kW. When setting up your site, it’s best to meet the practical needs of the majority of drivers and vehicles on the road. You do not need to build for the exceptions. In most cases, 150 to 200 kW chargers combined with a smart load balancing setup will suffice. 

Maximizing Utilization

Now we have the first sites installed. How do we maximize utilization quickly?

Seamless User Experience

With the chargers online, you need to make them as accessible as possible to any driver that pulls up. Pricing needs to be clear. The type of plug needs to be visibly labeled. And most importantly, there needs to be a multitude of ways to start and pay for a charge. These include:

• Mobile app: You can do this via the Monta app or with a white labeled charging app. It needs to be slick and intuitive. No lengthy processes to merely create an account or add a credit card. Offer Apple and/or Google Pay so it takes just a few clicks to get started charging. 
• Pay without downloading an app: In many cases this is better than requiring drivers to download yet another app. With NFC stickers or a QR code, you can offer app clips that just require an email and Apple or Google Pay to start charging in minutes.
• Payment terminals or kiosks on site: Drivers can simply pay with their credit or debit card on site.
• Idle fees: To make sure users are not parking for hours, a fee per minute when charging is complete.
• During the charging session the user should be informed on:
  • Charging speed: kW
  • Battery level
  • State of charge and estimated time remaining

The best way to pull all this together is through live notifications for iOS and Android The user sees it right on their home screen and knows exactly when their vehicle reaches their desired state of charge. 

• Customer support: You need experienced EV support which can assist customers when they encounter problems. Many of your customers will be first-time EV drivers. The questions you will get will range from very simple to a bit more complex. As a best practice, phone and chat is needed 24/7 in several languages. Support agents need to reply within 2 minutes or else the driver may be gone and frustrated (and may never return).

Exposure

EV drivers in your area should know where your chargers are located, how to access them, and whether they are available at that point in time. 

• Clear signage with pricing and availability 

All drivers are accustomed to seeing the price of a gallon of gas vividly displayed high above a gas station. It should be no different for the price of a kWh. Gas stations in more EV-developed nations display the kWh price right next to the price of gas, giving drivers clear and useful information. 

Operators on Monta have built all kind of signage with live data by using the Monta Partner API.

• Roaming and eMSP networks

There are many charging apps out there. It is critical that your charging site appears in all of them, is competitively priced, and that a successful charge is always executed no matter how the driver finds and activates your charger. More than 50% of charging sessions on public fast-charging sites are started via roaming. 

• Map providers

Many drivers default to in-car navigation, or Google and Apple Maps to search for a charging station. First time drivers may simply type “EV Charger” into their map search bar. Make sure your site is visible there and well-rated. 

• Local fleet bilateral agreements

A sure-fire way to drive up utilization is to partner with local electric fleets and offer them discounts on charging.

• Promotions and advertising

Ensure that local EV drivers know there is a high-quality charging site nearby through Facebook groups, Reddit groups, and local stores. 

• Local PR

It’s often fairly easy to get local press to attend the opening of a new site. Use local newspapers, online communities, and other local outlets. Offer a heavily discounted price in the opening weeks to attract drivers and build trust in your site as a place they know they can go for a reliable charge.

Loyalty

Now drivers are coming into your site(s). How do you build loyalty to come back?

• Great user experience and very high reliability: This is the most important thing. You can have a prime location, the best amenities, and a well-lit parking spot, but drivers are pulling into the spot for one elemental reason: to charge their car. If their car doesn’t charge, they don’t care about what snacks you may offer. They need to trust that the charger will work, the payment option will work, and that their vehicle is getting the advertised charging speed. The community of EV drivers is growing, but word of mouth and reviews still play a big role. There are many forums on Facebook or Reddit where customers share experiences, and your reputation as a reliable provider of charging is invaluable. 
• Discounts on in-store purchases for charging customers: If you can combine charging with discounts on certain in-store items, you will draw foot traffic to your store for your higher margin items and ultimately boost retail sales. 
• Charge packages: Drivers have typically displayed minimal loyalty to gas stations. Gas is a commodity, and people will fill up where the price is lowest. It will be similar for charging. If and when charging quality and reliability reaches total parity, even though we are still some ways off, drivers will go where the price is lowest. So for customers that use your site frequently, you can provide a 5 to 25% discount on charging that will drive further loyalty.

With more than 5,000 DC charging ports connected to the Monta platform, we have a lot of data on site utilization and performance. Here are some industry benchmarks you can expect:

Ensuring Uptime and Reliability

Uptime is critical for a successful EV charging business.

The industry is often talking about uptime, which is an important metric. It is a given that your stations should be online and available. However, a more important metric to track is failed charge percentages. A station that is available but then fails to execute a charge is useless for you and your drivers.

Charging is a more complicated endeavor than filling up a gas tank, with hardware, software, firmware, and vehicle technology all involved in the process. A 10 to 20% failed charge rate is not uncommon, and this can dramatically diminish user experience and revenue.

What is most important: 

• 99.95+% backend uptime through robust cloud-based ev charging software. Look for companies with a proven track record of scaling to more than 100,000 chargers. Inquire about a software provider’s experience with DC charging as well. DC fast charging is different from AC charging, and you need a provider with a proven track record of uptime and reliability for DC charging networks.
• Select the right hardware partner—the variation in quality is huge. Take the time to assess, and do not optimize for initial cost. Hardware issues can have long-term, harmful effects on the entire charging experience you are looking to deliver. Check out our statistics on more than 600 charger models.
• Failed charge rate monitoring and troubleshooting. Especially in the start of a new site launch, you need to hypercare and check every failed session to understand what went wrong and if something could be avoided. This can mean deep dives into OCPP logs and root-cause analysis with your software provider.
• Expect error rates of 5 to 10%. This can include human errors like a cable not being properly plugged in, a failed payment, or a wrong charger. But expect to see error rates on pure technical issues as well, like failed communication between the charger and vehicle, faulty roaming connections, etc. A 95% success rate will set you apart.
• Proactive alerting warns you if something is wrong on your network. And not just classic errors like “ChargerError”, but alerts that provide more detail. For instance, when a charger has been offline for hours, or trends like a drastic reduction in kWh sold in the last 24 hours. This level of detail can help you be proactive in attending to the performance of your site.

Reliable charging is key to success as sites are being built out. At Monta we see a clear trend between reliability and utilization. The more reliable your chargers are, the more they will be utilized. The more they are utilized, the more revenue you will generate. But revenue is just one element of your new charging business.

Maximizing profits

As mentioned in the introduction, profits on gas were long ago reduced to a few cents per gallon. Charging is a different story. You can actually earn healthy margins on charging alone, with companies often earning profit margins of $0.10 to $0.30 per kWh. Lock in favorable electricity prices and then deploy certain strategies to ensure profitability.

• Know your competitors’ prices: Use a tool to monitor pricing around your sites to always stay competitive on pricing. Monta has a pricing comparison tool provided for free to customers.
• Dynamic pricing: Pricing does not need to be fully static. It can either be scheduled to surge at peak time, or follow existing dynamic tariffs. With Monta, you can ensure a margin on electricity regardless of what electricity is costing you that day. This helps normalize for drivers that kWh pricing will not be fixed.
• Grid services: This is slowly being rolled out in some countries and states. The concept is that you can allow your capacity to be flexed for grid congestions. This means in the event of grid overload, you will have to pause or slow down charging for 20 to 300 seconds. This is called ancillary services. Depending on the area, this can either be used to obtain a lower price per kWh from your utility company (up to 30% discount). Other areas have a cashback concept, which is currently more than $20 per month, but it is estimated to be 10 times that in the future.
• Cross sell: Use the advantage of your store to attract customers inside once they are charging. It can be simple things like a small discount obtained after starting the charge.
• Customer attraction: Charging can be used to attract customers to your sites. Maybe you even reduce the margins on charging if the customer is buying a meal. Or the opposite scenario where the meal can be discounted and charging more expensive.
• Advertisements: For certain sites, running ads on large screens can generate extra revenue, while on other sites advertising or cross-selling your own store or another local business might be the best option.

When you combine healthy charging margins and the longer dwell time a driver will spend at your site, the revenue streams really start to add up. Even with in-store purchases and other charging adjacent streams, the most important thing remains getting the pricing right to ensure utilization. 

Financial reconciliation

Collecting revenue from charging can be a little bit more complicated than your typical gas pump. This is because revenue will come from several different sources:

• E-commerce via a charging app (Visa, Mastercard, Amex, Apple and Google pay) via a PSP.
• Roaming via other eMSP apps such as Ford, Porsche, and Chargepoint. This would be an invoice known as a charging data record (CDR).
• Bilateral agreements with local fleets, invoiced and via PSP.
• Payment terminals via a different PSP than e-commerce.

The infrastructure required to support and reconcile all of the above quickly increases in complexity. It requires ongoing integrations, automatic pricing updates, refunding when there are discrepancies, and maintaining connections with 50 different roaming partners. It becomes a tangled web that can be challenging to navigate for first-time site hosts. It needs to be fully automated so at the end of a charge, regardless of how the charger was accessed or how the driver paid, you see the correct amount of money in your account. 

Monta has built the financial infrastructure needed to automate all of this for gas stations. We offer a variety of ways to accept payments, we maintain integrations with other networks, and everything is visible and accessible real-time in the Monta Wallet. All you need to do is connect your charger, set the price, and we will handle the rest. 

Reducing Costs

You have seen some success with your first site and want to scale to a few more locations. The workload to manage multiple sites seems daunting. Thankfully, automation of critical tasks means you can effortlessly manage more sites. 

• Automate alerts when errors happen, instead of when the first customer attempts to start a charge.
• Diagnose charger issues remotely to minimize technician visits.This functionality is key. We see a 35% reduction in cost when the operator has great tooling to troubleshoot remotely.
• Automatic firmware updates to keep chargers running smoothly. This should be something you simply click a button and test on one site, and then roll out to all. A firmware update should not require an on-site visit and several hours of valuable time. 
• Automate escalations from support to local technicians.
• Make data-driven decisions using real-time analytics in Monta’s platform.

Charging might be a new endeavor for you, but it does not require an entirely new team. A couple of full-time employees can run your charging network even when it grows to hundreds of charging stations. It’s all about establishing automated processes early on by digitalizing every manual step.

Conclusion

The transition to EV charging is inevitable, but gas stations have a significant advantage in this market. By leveraging prime real estate, existing customer traffic, and convenience store sales, they can build highly profitable charging hubs.

Monta provides the all-in-one software platform for EV charging.

🚀 Gas stations that invest in EV charging today will become the fueling stations of tomorrow.

Read also:

📖 McKinsey Report on Fast Charging Infrastructure

📖 Insight Research: Long-Term EV Strategy

📖 Global Convenience Store Focus