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April 3, 2023: Royal Dutch Shell has announced its acquisition of Volta Inc., an operator of over 3,000 electric vehicles (EV) charging points, for approximately $169 million. Although Volta lost almost $250 million in the last 12 months, this strategic acquisition will help Shell protect its substantial businesses, including its retail fuel distribution network and related businesses such as convenience stores at gas stations. As more consumers opt to recharge their EVs at home, the convenience stores located at gas stations will see a drop in customer traffic. They must reduce operating, labour, and capital costs to remain profitable. This acquisition allows Shell to stay ahead of the curve as the EV charging market evolves, providing valuable insights into how to plan for the coming changes.
As more consumers adopt EVs, they will start to consider what they want to do while their vehicle is charging, which is something they didn’t think about when filling up with gas. Spending more time in convenience stores is not likely to be an attractive possibility, and restaurant, mall, and entertainment venue operators will be tempted to install EV chargers, pulling customers away from traditional gas stations.
The acquisition of Volta allows Shell to be at the forefront of the EV charging industry, providing information on how to plan for the coming changes, no matter what happens. This acquisition will not have a significant impact on Shell overall, but it will help protect one of its important businesses. New consumer habits always create unpredictable changes in retail, and as EV adoption grows, the knock-on effects from consumer adoption of electric vehicles are going to change habits. Shell’s acquisition of Volta helps the company plan its strategy and take a step forward in the market structure that is only just forming.
The EV charging market is evolving, and no one knows how it will develop. Shell’s acquisition of Volta allows the company to have as much information as possible about how to plan for the coming changes, no matter what happens. Whether EV charging stations will be ubiquitous, gas stations and their associated convenience stores will dwindle and eventually disappear, or they will add features that make them attractive places to spend time, no one knows. However, with this acquisition, Shell has taken a significant step towards planning for the future.
