Car subscription platform Karmo picks up rival Motopool amid plans to rev up growth

Brisbane-based car subscription platform Karmo has acquired local rival Motopool in a deal that elevates the business into the nation’s biggest car subscription business with annual revenue of $33 million.

The buyout of Motopool comes on the heels of Karmo securing a $138 million debt facility from the finance divisions of Volkswagen and Toyota, giving the group the firepower to help achieve its target of acquiring an extra 5,000 cars over the next 12 months.

The move comes on the heels of Uber announcing the closure of its Carshare business in August this year, just two years after buying up Sydney-founded Car Next Door.

Karmo co-founder and CEO Nick Boucher will continue to lead the merged entity, while Motopool CEO Andrew Rickett will assume the role of chief operating officer.

Karmo, which has operations in Brisbane, Sydney, Melbourne, Adelaide and Perth, was founded by auto industry veteran Boucher in 2019 as a car sharing subscription service that was looking to shake up the traditional car-ownership model. Karmo subscriptions allow users to choose a variety of cars on offer with the company covering insurance, servicing, depreciation and maintenance and the customers only responsible for fuel and tolls.

Boucher says the Motopool acquisition “solidifies” the group’s position as Australia’s biggest car subscription provider.

“For years, Karmo’s impressive growth has underscored the shift in how individuals and businesses experience new vehicles, increasingly recognising the appeal of access over ownership,” he says.

“This acquisition is a significant step forward in our journey, allowing us to accelerate our ambitious growth targets through our focus on a seamless customer experience, continuing to build out our proprietary software platform, expand our range of vehicles, and extend our reach beyond capital cities into regional areas across Australia.”

Rickett describes Motopool and Karmo as the “quiet achievers” in the industry.

“None of this would have been possible without our dedicated teams, who meet the mobility needs of thousands of customers each day across diverse market segments,” he says.

“Now, by joining forces, we’re creating a clear market leader with unmatched depth and expertise. Together, we’ll be able to accelerate innovation and expand our services and product offerings while staying true to our commitment to a customer-first experience that meets the evolving needs of today’s and tomorrow’s consumers.”

With the $138 million debt facility secured by Karmo, the company sees an opportunity to affirm its influence in a fledgling industry sector that is estimated to be worth $66.7 billion globally by 2032.

“Securing this debt facility, backed by the finance arms of the two largest global automotive industry leaders Volkswagen and Toyota, is a tremendous milestone for us,” says Karmo CFO John Bush.

“Our business is in a strong and profitable position. The acquisition of Motopool offers a rare chance to further solidify our position as Australia’s number one subscription business and unlock new potential in global markets.

“This debt facility provides the flexibility and firepower to accelerate our expansion while maintaining our commitment to sustainable growth.”