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Sydney-based online car subscription service HelloCars Subscription has been acquired by its larger rival Carbar in the latest consolidation of the Australian sector that positions the company as one of the country's fastest growing car subscription operators.
The acquisition is the second this year for Carbar after earlier scooping up Carly Car Subscription, which like Carbar was among the first companies in Australia to provide car subscription services.
HelloCars Subscription has been acquired from Loopit, the Sydney-based software company that operates a platform powering car subscription and rental services for dealerships, OEMs (original equipment manufacturers) and fleet providers globally.
“This deal reinforces our position as a leading car subscription platform in Australia,” says Carbar CEO Des Hang.
“By expanding our brand portfolio and capabilities, we’re building a more seamless and scalable experience that better serves a broad spectrum of Australian drivers’ different needs.
“Following global trends, we expect further consolidation in the car subscription space over the next year.
“Carbar is well-positioned to lead this shift, with a clear house of brands strategy that spans everything from accessible, everyday offerings like HelloCars to our flagship Carbar service for those seeking a premium, yet fully flexible alternative to vehicle ownership.”
Carbar will retain the HelloCars brand as part of the transaction, while Loopit will focus on scaling its software platform with plans to support Carbar by integrating its technology more broadly into the group’s operations.
The deal also builds on Carbar’s house of brands strategy.
The company says Carly, which was acquired in May this year, will continue to serve the mid-term subscription market, while the HelloCars brand will focus on a “value-orientated no-frills” subscription offering.
Meanwhile, the company says its Carbar brand will serve as the group’s premium offering, “serving customers who prefer a long-term subscription and the benefits it brings, over vehicle ownership”.
“HelloCars was an important part of proving the car subscription model in Australia, and we’re proud to see the brand continue its journey under Carbar,” says Loopit director Paul Higgins.
“At Loopit, we’re more committed than ever to powering the next wave of growth in subscription and rental through our software.
“We look forward to working alongside Carbar and its portfolio of brands as the industry scales this model with confidence.”
The Australian car subscription market was valued at $86.6 million in 2024 and is forecast to reach $728.4 million by 2033.
Carbar’s business allows customers to have exclusive use of their chosen vehicle with the subscription fee including maintenance, roadside assist, insurance and registration for a fixed weekly payment.
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