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Brisbane-based car subscription platform Karmo has partnered with AGL Energy (ASX: AGL) to manage the energy giant's existing electric vehicle subscription fleet and platform operations, marking the latest expansion move for Australia's largest player in the fast-growing segment.
The deal will see Karmo take over management of AGL's EV subscription offering, which provides customers access to fully electric vehicles with insurance, maintenance, roadside assistance and charging credits bundled into a single weekly payment.
Financial terms of the partnership have not been disclosed.
The partnership comes about 18 months after Karmo acquired rival Motopool in late 2024, a deal that pushed the company's annual revenue to about $33 million and consolidated its position atop the domestic car subscription market.
The company is currently targeting annual revenue of $60 million for FY26.
Late last year, Karmo also partnered with salary packaging and novated leasing provider Smart to launch a flexible novated subscription with a minimum term of just four months.
“Today marks another pivotal moment for Karmo as we officially announce our strategic partnership with AGL," says Karmo CEO and co-founder Nick Boucher.
"Together, we are launching an innovative suite of personal and novated electric vehicle (EV) subscription plans designed to completely reshape how Australians access, drive, and integrate renewable mobility into their daily lives.
“We are particularly excited to be disrupting the novated lease space, in conjunction with Smart. For too long, salary packaging has meant strict multi-year financial lock-ins.
"The road ahead is electric, and together with AGL, we are making it simpler and more affordable to get behind the wheel.”
Founded in Brisbane, Karmo operates a platform that allows customers to subscribe to a vehicle on a rolling basis rather than committing to traditional ownership or a multi-year lease.
The company has grown subscribers by more than 500 per cent over the past three and a half years and now employs around 90 staff across five Australian cities and Sri Lanka.
About 12 per cent of its subscriber base currently drives an EV.
AGL's head of e-mobility Mabelle Reyes says the partnership fits within the energy retailer's broader push into home electrification.
“Over the past year we’ve seen strong and sustained demand for home electrification technologies, including electric vehicles, because of structural factors like cost of living pressures, government incentives and a desire for greater control over household energy costs,” says Reyes.
“That momentum is flowing directly into e-mobility, with more Australians actively exploring flexible ways to make the shift to electric vehicles.
“Uncertainty can be a natural barrier for people considering an electric vehicle, particularly when moving from petrol to electric, and that’s where EV subscriptions can play an important role.”
The global car subscription market is estimated to reach US$66.7 billion by 2032, and Karmo has been building its credentials to capture a larger share.
The AGL deal positions Karmo to accelerate its EV fleet ambitions, with the company also signing agreements with three Chinese EV manufacturers, including Great Wall Motors, BYD and Zeekr, to broaden the range of vehicles available to subscribers.
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