Rubicon’s EV Charging Network Profitable and Expanding
The company sees significant growth in usage as fuel prices rise, pointing to a shift in electric vehicle trends.
The Full Story
Rubicon’s electric vehicle (EV) charging network is not only profitable but is also witnessing rapid growth in usage, especially in light of rising fuel prices. Hilton Musk, the head of Rubicon's e-mobility division, recently shared on the 'Watts & Wheels' show that there has been a remarkable 30% increase in usage each month for two consecutive months as South Africans gravitate towards electric vehicles due to the escalating costs of traditional fuels. The growth was initially perceived as a temporary spike, but Musk noted that demand continues to rise even after the initial surge.
Founded in 1985 in Port Elizabeth (now Gqeberha), Rubicon started as an electrical supplier to major manufacturers like Volkswagen. Today, the company operates 125 EV chargers nationwide, with ambitions to expand this footprint to a thousand within the next five years—efforts that are approximately eight times their current scale. Rubicon's strategy for growth focuses on urban markets including Cape Town, Johannesburg, Pretoria, Durban, and Bloemfontein, where around 90% of vehicle usage occurs.
This targeted approach has allowed the company to establish profitability a year ago, with Musk indicating that public EV charging could potentially outpace the traditional 80/20 split of home charging to public charging commonly seen in mature markets—it could be closer to a 70/30 ratio in South Africa due to many EV owners residing in complexes without private charging solutions. The company has also positioned its chargers along key routes like the N3 and N4, aiming to enhance long-distance travel for electric vehicles, with plans for a Durban-Cape Town route already launched in 2024. Rubicon’s pricing strategy offers its DC fast charging at R7 per kWh, working out to about R1 per kilometer, which is considerably lower than the fuel costs of combustion engines.
Looking ahead, Musk remains optimistic about the trajectory of electric vehicles in South Africa. He anticipates that battery-electric vehicles will constitute 5% of new passenger sales by 2028. He also notes that if hybrids and plug-in vehicles are included, this market threshold is nearly within reach.
The growth of Rubicon’s charging network is not just a response to market demand but a clear indication of the evolving landscape of transportation within South Africa, pointing towards a more sustainable future for mobility in the region. As the adoption of electric vehicles continues to rise, Rubicon is well-positioned to lead this transition, providing essential infrastructure that will support a wider acceptance and integration of electric mobility in everyday life. Their proactive approach in positioning charging stations in key urban areas and along major routes will be crucial for facilitating long-distance travel for EV owners, consequently making sustainable driving more accessible for all South Africans. In the context of the increasing fuel prices globally, Rubicon's growth story reflects a significant shift in consumer behaviour towards more sustainable transport solutions, aligning with broader environmental goals and the need for reduced carbon emissions in the face of climate change.
Why It Matters
Rubicon’s expansion in the EV charging space signifies a growing transition towards electric mobility in South Africa, driven by rising fuel costs and sustainability goals. This shift is vital for addressing climate change and supporting a greener economy.
What's Next
Rubicon aims to increase its charging network to 1,000 stations within five years, further improving access to EV charging and encouraging the uptake of electric vehicles across South Africa. Plans to enhance key routes will also promote long-distance EV travel.