Abstract: Shenzhen and Hangzhou are two demonstration cities for electric vehicle (EV) applications in China.
The organization pattern and profitability of EV taxi business were compared between battery-charging service
in Shenzhen and battery-swapping service in Hangzhou to promote the EV industrialization in China. The
Shenzhen pattern is quick-charging, vehicle-purchasing, and third-party-operating, while the Hangzhou pattern
is battery-swapping, vehicle-purchasing without batteries, and battery-renting. The net present value (NPV) and
the internal rate of return (IRR) of the two patterns were calculated using the value chain analysis method and
the cash flow calculation method. The results show that the NPV and IRR of the two patterns for business units
are both negative, indicating a low profitability even with government allowances. Therefore, each pattern needs
to be improved by developing profitable business and by enlarging local EV market scale.

Key words: electric vehicle (EV), charging service, battery swapping service, taxis, business patterns,
organization pattern, profitability