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Electric Car Startup 'Better Place' Liquidating After $850 Million Investment
awaissoft writes "Better Place hoped to transform the energy industry with electric cars and battery switching stations. Better Place wanted to make the world a better place by replacing gas stations with battery switching stations that would remove the driving mileage limitations from electric cars and eventually rid the world of fossil-fuel burning vehicles. But after six years and burning through $850 million, the company is filing for liquidation in an Israeli court. As reported by the Associated Press, Better Place's Board of Directors issued a written statement Sunday announcing that the company was winding down."
You mean the lack of customers is a hindrance to business? You mean to tell me that businesses don't exist to make the world a better place by trying to force a product into a niche that isn't exactly there yet?
Huh. I could have sworn this was going to work. I mean, there's absolutely no profit in fossil fuels, right?
It's not about being "old fashioned" either. It's about what works. Electric doesn't work for the vast majority of the world - yet. The business there right now is either niche ultra-high-end, or utility - both of which require a large up-front investment that you're only going to find in certain places. There's a growing niche for big-city transport, but that requires investments that many municipalities aren't willing to make just yet.
There are also a lot of problems that electric doesn't solve, like the big-haul transportation industry. Sure, you could offload that work to a national rail network, but then you run into the problem of overloaded rail traffic. In America, that's a bigger problem than you would actually imagine. (eg: it's becomming
Electric cars might be coming for the masses, but these guys were way ahead of the curve. A successful business launches right before the peak of the curve - and we're nowhere near there yet for electric cars.
So then, I'm not surprised. Sad that it didn't work out for them, but, really, did you expect anything else?
"Better Place" was using proprietary charging outlets with smartcard-style protection, and pushed for a law prohibiting competitors from using their outlet infrastructure.
From the start it sounded like a nightmare case of vendor-lock-in. As an Israeli consumer - I say good riddance.
Open infrastructure, ability to charge the car from electrical outlet in your driveway, and laws permitting car conversion to electricity is the fertile ground needed to make EVs thrive.
To demonstrate the point let's compare e-bicycle/e-scooter market vs. e-mopeds. E-bike or e-scooter costs from 1K to 2.5k USD in Israel, and market is thriving.
Gasoline powered bikes and mopeds are extremely popular, especially in large cities. As a contrast due to laws, regulations and insane insurance costs - you have to search long and hard to find an e-moped on the street.
Have a look at the battery swap station action:
https://www.youtube.com/watch?v=PtO3BxnMoAs
Pain is merely failure leaving the body