Shell to Acquire Volta’s EV Charging Network for Roughly $169 Million
Volta Inc. has announced a merger agreement under which Shell USA would acquire Volta in an all-cash transaction valued at approximately $169 million (USD). The big get here is Volta’s electric-vehicle charging network that doubles as a media board that can display advertisements, public service, announcements, and whatever else Shell might want people to see.
You’ve undoubtedly noticed gas stations with small screens that begin broadcasting corporate propaganda the second you’ve activated the pump. Volta’s EV chargers are the mega-sized version of that concept with the ability to allow customers to track each unit’s status remotely via a mobile application. This comes in handy when determining how much longer a charging station might be in use or whether it’s even functional – saving EV owners the headache of having to set back out to find a different station when there’s not an open bay.
Under the terms of the merger agreement, Shell USA Inc. will acquire all outstanding shares of Class A common stock of Volta at $0.86 per share in cash upon completion of the merger, which represents an approximate 18 percent premium to the closing price of Volta stock on January 17, 2023, which happens to be the last full trading day prior to the announcement of the transaction.
“The shift to e-mobility is unstoppable, and Shell recognizes Volta's industry-leading dual charging and media model delivers a public charging offering that is affordable, reliable, and accessible,” Vince Cubbage, Volta’s Interim CEO, said in the release. “While the EV infrastructure market opportunity is potentially enormous, Volta's ability to capture it independently, in challenging market conditions and with ongoing capital constraints, was limited. This transaction creates value for our shareholders and provides our exceptional employees and other stakeholders a clear path forward."
"Both Volta and Shell have a demonstrated ability to meet the changing needs of customers, and this acquisition will bring that experience together to provide the options that are needed as more drivers choose electric."
This is likely a wise move on the part of Shell. Owning a larger segment of North America’s EV charging infrastructure means it can profit off electrification as it becomes mainstream while also benefiting from the marketing opportunities associated with Volta’s giant screens. Buying the company out likewise means less competition moving forward – something that’ll be advantageous whether or not EVs go mainstream. But this is also a reminder that electrification is not the domain of eco-minded startups. It’s loaded up with – and arguably dominated by – the same energy companies EV advocates frequently bemoan and they’re all vying to get a bigger piece of the pie.
[Image: Volta Inc.]
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A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.
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Clearly nobody on this blog has actually used a Volta station before.
The one I used was located at a whole foods within walking distance of a kid-sports event we were attending in the Chicago Suburbs.
The Volta station clearly put there to act mostly as a billboard.
The problem was that it was a 20-amp L2 charger, and the Whole Foods people put a 2-hour parking limit sign there. That means that I was limited to about +40 miles in any given session.
A 20MPH charger is pretty weak charger for a public charger. (A 20MPH charger it's just fine for a home charger where I park for 12+ hours per day, unless I drive more than 240 miles per day).
So, I had to fall back on Plan B and use one of 5 Tesla Superchargers I passed on my way home for 7 minutes. The Tesla GPS took care of everything.
The Volta charger I've used was low utility. It was about as valuable as a coupon to get you get while you shop for groceries at Whole Foods -- which has most of the same stuff as Meijer, but at twice the price.
I greatly appreciate that they essentially gave me a free "gallon of gas". But it's cheaper to charge at home and shop at Meijer.
I appreciate the freebie, but attaching a billboard to an EV charger is really just a way to get billboards into places where the residents would normally object to billboards. The actual utility to EV drivers is pretty minimal.
Somehow not liking long charge times compared to filling a tank with dinosaur juice is akin to being a luddite. It's an interesting perspective. I've been a technology worker for 25 years and never considered myself a luddite. I owned some of the earliest smartphones years before iDevices became available and owned smartphones ever since. Having worked in tech for that long, I have developed a knack for recognizing bad technologies when I see them. EVs aren't necessarily bad, but they are also not an across-the-board improvement on traditional liquid fuel ICE automobiles.
EVs have their place, but somehow if you point out their shortcomings - you're a crotchety old person that watches network news and hates technology.
New isn't always better.