• by Karl Greenberg , June 10, 2015

The slice of the entire car market that comprises electric cars is about as thick as a spark-plug gap. But it's growing, albeit slowly.

Green Car Reports noted that last year the market grew 27% to 118,500 worldwide with Nissan's Leaf the big dog. Range anxiety is a point of buyer hesitation, but charging stations are popping up in parking garages, and at retail parking facilities.

Charging station company Volta Industries is trying out a new model: free juice. On Wednesday the company, which started in Honolulu in 2010, officially launches the new model, with a goal to get 400 charging stations in several U.S. metro markets this year. The key is that the whole shebang is advertising supported — the electricity is free and Volta gets revenue from sponsors. 

Scott Mercer, co-founder and CEO tells Marketing Daily that the company currently has 110 charging stations in five cities — San Francisco, Los Angeles, San Diego, Phoenix and Honolulu. Sponsors current and past include Whole Foods, Macy's, solar company Sungevity, Fiat and Nissan. The startup's infusion of financial juice includes $4.5 million and $3 million from Three Bridges Ventures and SQN, respectively, with the total reaching about $12 million, including prior investment capital from other sources. 

Mercer says that the strategy is a “community engagement model,” appealing to brands that want to associate with a progressive, sustainability zeitgeist.

“We wanted to figure out how to accelerate adoption of electric cars. How do you get a mass audience? The action we took was building a high-visibility, free-use electric car servicing network,” he says. “We use them not to attract and talk to the drivers themselves so much, but as a beacon for entire community. We also want to inspire people toward electric cars, and brands come along for the ride.” 

He says the company, aiming for locations at places like Whole Foods and shopping malls, has relationships with seven of the top 10 national real estate investment trusts. The units, he explains, are about 6-feet tall and are mated to a front-and-back LED screen delivering sponsorship messages. “Our pitch [to location retail venues] is we will install and maintain them for free, and reimburse them for the electricity.” He says electric-car driving customers, who charge for an hour or so, on average, shop while they wait.  

The stations, he says, are designed to appeal not just to people charging their cars but to the entire shopping population because the LED signage is visible at a distance. The best response in terms of sponsorship interest has been from finance and insurance companies, he says.

“The community aspect of doing good in the community in a high profile way appeals to brands looking to differentiate themselves,”  Mercer adds.

Charging stations are getting an average of 7.5 hours per day of usage, with the best locations are getting used 12 to 16 hours per day. “Drivers are the ones directly benefitting, but they are evangelists for electric cars and our brand.” In terms of expansion, the target markets are those that index strongly for electric car friendliness, with target cities focused on the eastern seaboard, California and the Pacific Northwest, he says.