The number of electric vehicles on the road in the U.S. is expected to soar to 18.7 million by 2030. In 2018, just three years ago, that number hung at 1 million.
To accommodate that growth, 9.6 million electric vehicle charging stations will be needed nationwide, according to the Edison Electric Institute.
That's where one of the rising stars of Cincinnati's startup scene comes in.
Last year, as the coronavirus pandemic gripped the nation, executives in Cincinnati launched Electrada, which installs, owns and operates electric vehicle charging stations.
"At the end of this year we’ll be beyond 300 (charging stations)," CEO Kevin Kushman said in an interview. "In the first five years, we'll be at 5,000."
It's a bold bet for an upstart company. To get there, Kushman and his team have built a multi-pronged strategy, targeting high-profile locations, residential apartment complexes, fleet opportunities and corporate partners, including Cincinnati powerhouse Procter & Gamble, with whom the company is in the process of inking a deal with.
As Kushman's team continues its rapid deployment of stations, Electrada stands to become a well-known player locally. It has a visible product located in highly trafficked areas building its brand recognition. Officials will need to secure a large amount of capital to pay for what can be a costly mission, positioning the company to become one of the region's best-funded startups. And Electrada's focus on sustainability differentiates it within the region's startup community, whose mainstays have historically had a medical focus.
Removing barriers
The acceleration of electric vehicle adoption comes down to two things: accessibility and reliability. Users want to know if they're driving somewhere they'll have access to a charging port and not have to fear running out of battery, and they want to know the technology within that charging station will work without hassle.
Electrada offers both, while also eliminating the costs associated with having a charging station on-site for business owners, according to Irina Filippova, Electrada's chief operating officer and a 20-year veteran of the energy sector.
Filippova said oftentimes operators, in this case Electrada's competitors, will offer business owners the necessary hardware and network to run a charging station on their property, but they don't cover the costs of installing that system or maintaining it. Those costs can range into the thousands. In some cases, the supplier of the hardware aka the station itself and the operator of the network are different, leaving the business owners responsible for integrating the two systems.
Kushman compared the experience to "asking someone to do an IT integration without an IT guy."
"It’s filled with risk," Filippova said, adding Electrada's model is designed to standardize the experience since the company installs, operates and maintains its charging stations directly.
By eliminating the costs, Electrada is able to show business leaders there's little reason not to have charging stations on site, which means they'll be able to cast a wider net in terms of where they can install.
So far, Electrada's earliest locations include iconic local destinations, such as Findlay Market, the Cincinnati Zoo and the Cincinnati Art Museum. The company is also working on projects in Dayton and Columbus and scouting opportunities in Cleveland, Kentucky and Indiana.
But it's not just one-off destinations that will make or break this business. Kushman and Filippova want to touch EV users wherever they may be, whether it's at home or work. Currently, they're striking partnership deals to do just that.
Electrada inked a deal in November with HILLS Properties to bring charging stations to its Allure Luxury Apartments in Centerville. HILLS CEO Louis Guttman said the Blue Ash-based developer expects to add charging stations at additional properties as residents continue to adopt electric vehicles.
The company is working with Mike Albert Fleet Solutions so users "can get the vehicle and the charging as one cost per month per mile," Kushman said. It's a new area for Electrada and one Kushman described as an evolution of the company's initial business model. (Jeff Hart, president of Mike Albert Fleet Solutions, serves on Electrada's advisory board.)
Electrada also is finalizing a deal with P&G to install charging stations at the consumer goods giant's locations throughout Cincinnati, P&G officials confirmed. With 10,000 local employees, P&G offers Electrada a huge base of potential users, as well as additional credibility with other corporate giants the company is chasing for similar deals.
Officials argue these deals will allow Electrada to grow its footprint, boosting its overall accessibility. And since the company is constantly in tune with its stations, Electrada has the ability to ensure each station is working properly, helping prove to users how reliable its systems are.
But ultimately, Kushman and Filippova's vision for building a national network of company-owned charging stations will come down to money.
Funding their future
The costs of installing electric charging stations can range dramatically in price since you're accounting for a variety of factors, Kushman said.
A site may cost anywhere from $4,000 to $17,000 to get fully equipped. That means a lot of cash is needed.
Shortly before its launch in 2020, officials secured funding to support their initial projects. Kushman declined to share that value, but said all the firm's original investors were from Ohio.
"That part of it showed this business model really resonated," he said. "That foundational support has been really important to us."
In March, the company secured $180,000 from the Ohio Environmental Protection Agency to install 60 charging stations. Those stations represent 15 projects throughout in Butler, Clermont, Hamilton and Montgomery counties.
But it's not just charging stations Electrada officials need to be able to afford. Currently, the company has six staffers, including Kushman and Filippova. The goal is to double that number over the course of 2021 before growing as needed.
Neither Kushman or Filippova would share how much capital the company aims to raise this year, but confirmed talks were underway.
At the ceremony celebrating the company's installation at Findlay Market, Mark Policinski, CEO of the Ohio-Kentucky-Indiana (OKI) Regional Council of Governments, called Electrada the "type of innovator Cincinnati needs right now" and praised its ability to help deliver sustainable transportation throughout the region.
Securing a large capital raise, like the P&G deal, will not only give Electrada further cache to propel its mission but also help boost Cincinnati's reputation as a place that fosters sustainable startups.
"I think we're close (as a region), but need to see some funding and traction," said Eric Weissmann, vice president of communications for Cintrifuse, a local startup catalyst.
Filippova said the biggest success from year one is that the team, though working remotely, has "been able to put Electrada on the map," something she wants to see continue in the years to come.
"People are talking about us," she said. "We’re getting inbound interest all the time.
"What we’ve done speaks for itself because we’re being referenced as a company of choice."
