Redefining the roadside: Charge and chill

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Redefining the roadside: Charge and chill

Redefining the roadside: Charge and chill

Subheading text
The roadside service is getting a reboot - from quick pit stops to leisure hubs.
    • Author:
    • Author name
      Quantumrun Foresight
    • October 10, 2024

    Insight summary

     

    The evolution of roadside service is shifting from traditional gas stations to multifunctional spaces that cater to electric vehicle (EV) users with amenities, enhancing the travel experience beyond mere refueling. Initiatives by various companies to integrate EV charging with leisure and workspaces signal a move towards more sustainable transportation and a reimagined role for roadside stops in the daily lives of travelers. This transformation presents potential new business models and the need for careful planning to ensure equitable access and alignment with environmental goals.

     

    Redefining the roadside context

     

    Traditionally, roadside service has been synonymous with gas stations and quick stops for fuel and snacks. However, EVs are prompting a reevaluation of what roadside service can offer. With their Subway Oasis project in partnership with GenZ EV Solutions, fast food brand Subway is pioneering efforts to integrate EV charging stations with amenities, such as Wi-Fi, picnic tables, restrooms, and playgrounds at their locations. This initiative enhances the overall customer experience, making the stop more than just a place to recharge the vehicle.

     

    Starbucks and Taco Bell have also embarked on their projects to install EV charging stations at select locations. These developments signal a shift towards creating more comprehensive service offerings that address the needs of a new generation of road users. With less than 6 percent of all new vehicles sold in the US being electric in 2022 (according to Motor Intelligence), these initiatives also reflect a forward-thinking approach to supporting and accelerating the transition to more sustainable modes of transportation.

     

    Moreover, companies are reimagining EV charging stations as multifunctional destinations that merge the functions of vehicle charging with those of residential, work, and public spaces, as evidenced by the collaboration between BMW Designworks and Gensler in their "Architecture X Mobility" project. This initiative aims to create "Nth Spaces," which serve as new-age community centers that encourage mindfulness, social interaction, and productivity, making vehicle charging a secondary aspect of the experience. In Canada, a competition to design the "Electric Fuelling Station of the Future" has generated interesting concepts integrating EV charging with amenities like playgrounds, workspaces, and even robotic restaurants.

     

    Disruptive impact

     

     

    These enhanced service areas can significantly improve the travel experience by providing amenities that promote relaxation and productivity. However, this evolution may lead to increased travel costs, as the advanced services offered at these stations could have higher price tags. Additionally, such high-end service areas might widen the gap between different socioeconomic groups, where access to premium services could become another marker of social disparity.

     

    Meanwhile, companies operating in this space can tap into new revenue streams by offering services beyond traditional fueling, such as retail, dining, and leisure activities. This diversification demands significant investment in infrastructure and technology, as well as a strategic shift towards service-oriented business models. Furthermore, businesses must navigate the competitive landscape carefully, as the entry of new players from various sectors could intensify competition and pressure existing service providers to continuously innovate to retain their customer base.

     

    For governments, the shift towards enhanced service areas aligns with broader environmental goals, encouraging the adoption of EVs by improving charging infrastructure and user experience. However, this transition requires careful planning to ensure equitable access across all regions, preventing the emergence of "charging deserts" in less affluent or rural areas. Moreover, regulatory frameworks need to be updated to address the complex interplay between transportation, commerce, and public spaces, ensuring that the expansion of roadside services contributes positively to local communities and aligns with national sustainability objectives.

     

    Implications of redefining the roadside

     

    Wider implications of redefining the roadside may include: 

     

    • New jobs created in the maintenance, operation, and management of multifunctional roadside service areas, offsetting job losses in traditional gas stations.
    • Increased investment in renewable energy sources as companies seek to power EV charging stations with solar or wind energy to appeal to eco-conscious consumers.
    • Changes in urban and rural development strategies, as governments and businesses focus on equipping highways with advanced service stations, leading to more balanced regional economic growth.
    • The rise of new business models centered around "charging as a service," where companies offer subscription-based or pay-per-use charging and amenities, altering traditional revenue streams.
    • A potential increase in leisure travel by road due to the attractive amenities offered at charging stations, boosting local tourism industries.
    • Adjustments in real estate values, with properties near enhanced roadside services seeing an uptick in demand and price due to their perceived convenience and modernity.
    • A shift in consumer behavior, with drivers planning longer trips around the availability of premium charging stations, affecting how people view road travel.
    • Governments introducing new regulations and standards for constructing and operating multifunctional roadside service areas to ensure safety, accessibility, and environmental sustainability.

     

    Questions to consider

     

    • How will the expansion of enhanced roadside services change your approach to long-distance travel?
    • How could your local economy benefit from hosting a multifunctional roadside service area?

    Insight references

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