| Price elasticity of demand | −0.65 |
| Income elasticity of demand | 1.4 |
| Operator | Market share (%) |
|---|---|
| VoltFlow | 38% |
| AmpCharge | 29% |
| ElectroZap | 14% |
| PowerUp | 8% |
| GridSpark | 6% |
| NeoCharge | 3% |
| ZapGo | 1% |
| Others | 1% |
VoltFlow currently has over 1.2 million UK subscribers, who typically pay a subscription fee of £12.50 a month to access discounted high-speed charging. At this rate, drivers can rapidly charge their vehicles across a nationwide network of ultra-rapid charging bays. The demand for subscription-based charging grew rapidly as drivers sought more predictable alternatives to pay-as-you-go public charging rates. AmpCharge is VoltFlow’s primary rival, offering a very similar network density and rapid-charging speed to its 900,000 subscribers.
However, to make use of these subscription charging networks, consumers must first buy or lease a compatible electric vehicle (typically costing upwards of £32,000) alongside specialized high-voltage charging cables.
When VoltFlow increased its monthly subscription charge by £1.50 in early 2024, internal surveys showed that subscriber demand remained highly price inelastic. Only 3% of regular subscribers stated they would switch networks or cancel entirely.
Using examples from the information provided, explain what is meant by both 'substitutes' and 'complementary goods'.
