Volkswagen subsidiary Elli is fundamentally realigning its business model: in future, the company will focus on fleet solutions, charging cards, energy management, and bidirectional charging. To achieve this, its own hardware business will be phased out, and its in-house AC wallbox will be discontinued. Elli is also opening itself up to external partners. We have all the details.
Volkswagen Group Charging GmbH, better known under the brand Elli, is undergoing a comprehensive strategic realignment and will in future focus primarily on digital services related to charging and energy management. This was confirmed by Elli CEO Giovanni Palazzo during an exclusive background discussion with electrive.
“We will significantly scale back our hardware business in the future,” states Palazzo. Instead, Elli intends to focus on business models that generate recurring revenue and are scalable, such as fleet management, charging cards, and charging apps. The previous hardware business had served as a means to an end: Elli first needed to establish a sufficiently strong revenue base in the digital sector before it could now dispense with significant hardware activities, explains Palazzo.
The new strategy envisages only two core business areas: Mobility and Energy. “We are focusing on transaction-based, digital, and scalable business models that are also as capital-efficient as possible,” explains Palazzo. According to the CEO, the decision is driven by an increasingly competitive market environment. While electromobility continues to grow, many providers of charging infrastructure and related services are under considerable economic pressure. Palazzo expects further consolidation in the industry in the coming years.
Source link
