Electric vehicles accounted for almost 6% of all new cars sold in the US in 2022, up 3.1% from the previous year, and that number will continue to grow for years to come. While still a young industry, the ecosystem surrounding EVs, from EV charging and installation to insurance products and parking, is shaping up to be a disconnected and somewhat complicated one.
So say the founders of blue Point, a banking and rewards platform for electric vehicle owners that aims to improve the after-sales experience. Here’s how it works: Individual owners or fleet managers sign up for the Bluedot debit card, which they’ll use for all car-related purchases, but mostly electric vehicle charging. Bluedot currently offers customers a flat rate of $0.30 per kilowatt hour for charging with participating EV charging stations and a 20% rebate on charges with non-participating charging networks. Customers find stations and pay charges directly with charging partners in the Bluedot app, saving them the need to download multiple apps.
Bluedot users also get 5% cash back on all auto expenses, plus another 2% cash back for all other expenses. In addition, the company offers users rewards at nearby stores and restaurants. So while waiting for their car to charge, a customer can walk to the local Starbucks for a coffee and get 10% cash back on that purchase, or do some shopping at Whole Foods and get another 15% back on cash, for example.
The startup, which will join Y Combinator’s winter 2023 cohort and recently closed a $2 million preseed, is initially focused on charging stations, in part because it’s an industry that’s about to explode with federal and state funds. The Inflation Reduction Act, which President Joe Biden signed into law in August 2022, gives all states access to more than $1.5 billion in funds to facilitate electric vehicle charging projects. That could end up looking like a big push to install infrastructure without much cohesion.
The Bluedot app aggregates nearby EV charging stations and offers charging rewards. Image Credits: blue Point
Bluedot did not say which charging companies it works with to offer its flat rate, but the startup said customers could initiate charging through the Bluedot app at around 60% of all charging stations in the US for To grow its network of partners, Bluedot targets smaller and newer collection companies that might not have the resources to create their own app and payment platform.
“EV charging startups are looking for solutions like ours to increase visibility and accessibility for drivers, streamline payment processes, and improve the utilization rate of charging stations,” Selinay Filiz Parlak, told TechCrunch. Co-Founder and COO of Bluedot. “Bluedot is working on fintech integration to help these companies make their charging stations more viable and accessible to drivers.”
“Currently, utilization in most charging station networks is between 5% and 8%. Bluedot intends to raise this rate above 15%. We started with small charging station companies, but our goal is to unite all brands with fintech for users,” continued Parlak.
Bluedot’s main customers today are individual drivers who found the startup through partnerships with car dealerships and ride-sharing companies. Parlak says Bluedot’s next target is fleets to help them manage spending and freight processes and get better deals.
“For example, one of our partners is a leasing company that rents cars to a group of delivery people who are managed by a fleet manager,” Parlak said. “They want to offer a bigger charging station ecosystem, that is easier to bill and then reimburse, which we do. And they also want to get better deals around electrification.”
Bluedot also manually pulls data for customers about their charging habits, how much they spend, how much energy they use, their top charging locations, the amount of carbon dioxide emissions they have avoided by using an electric vehicle, etc. In the future, the company wants to automate that task to make it smarter and more scalable.
During YC, Bluedot wants to focus on growth and product development.
“Our goal is to build partnerships and make deals leading up to demo day,” Ferhat Babacan, Bluedot’s CEO and co-founder, told TechCrunch. “Specifically, our goal is to secure partnerships in the areas of auto dealerships, charging networks, and auto-related spending. Also, we plan to start pilot tests for the Bluedot fleet card.”
