For much of the past decade, car subscription sat on the fringes of Australia’s vehicle market. Often compared with short-term rental or car share, it was viewed as a consumer convenience rather than a serious fleet solution. That perception is now changing, as subscription providers mature their business models and fleets look for more flexibility in an increasingly uncertain operating environment.
According to Nick Boucher, CEO of Karmo, 2025 marked a turning point in how subscription is being evaluated by fleet decision-makers.
“When you look at the overall market itself, I think it’s (fleet) just under half the market. So it’s a huge space, and one that we knew we had to get into.”
The move into fleet has not been opportunistic. Boucher says the business waited until the fundamentals were in place.
“We just wanted to make sure that we were comfortable in our business model, availability of stock, and also our technology was ready to go. And you know, those three things are ticked.”
Scale, utilisation and fleet discipline
One of the challenges facing larger fleets is managing utilisation as vehicle numbers grow. Boucher argues that scale quickly exposes weaknesses in fleet controls.
“I think it’s a lot easier to do things when you’re running 6, 7, 8, 100 vehicles, but when you start getting over 2,000 vehicles, scale becomes a bit more of a problem if you’re not managing those things well.”
Accident management, insurance, repairs and downtime all become more complex as fleets grow. Subscription, he suggests, can act as a pressure-release valve rather than a replacement for core fleet assets.
“Why would I not do this for 15 per cent of my fleet or 20 per cent of my fleet? Because then I do have the ability of dropping these cars pretty quickly where I don’t require them.”
This flexibility becomes particularly relevant when contracts are won—or lost—at short notice.
“The beauty of the subscription is you’ve got the ability to then return those cars within the 30-day period… rather than having dead stock sitting there doing nothing.”
Government and council fleets: slow, but interested
Government fleets are rarely early adopters, but Boucher says local councils in particular are starting to engage.
“We’ve had really good uptake from local council, because it’s not actually falling into a category where they’ve already got suppliers or panels as such, because there’s no subscription.”
Subscription requires education, but once understood, it opens different conversations around balance sheets and debt.
“Once they understand the subscription benefits to them again, being off balance sheet… it could still be a big win to reduce overall debt.”
Electric vehicles as a low-risk trial pathway
Electric vehicles remain one of the biggest transition challenges for fleets. Subscription, Boucher says, has found traction as a low-risk entry point.
“The beauty of our model is that they can generally try to see it’s going to work for them, because it’s a big shift, right?”
As operational concerns are replaced by real-world experience, attitudes shift quickly.
“Once people are overcoming the fears with reality, they’re saying that with most vehicles, it makes a hell of a lot of sense.”
Residual value uncertainty also plays into subscription’s appeal.
“No one really has a genuine understanding of residuals yet on EVs… The beauty of the model is you don’t have that risk.”
Novated leasing, FBT and policy uncertainty
The FBT exemption for electric vehicles has accelerated EV uptake, particularly through novated leasing. Boucher supports the intent, while acknowledging the uncertainty.
“Anything that helps accelerate the take up of electric vehicle… is a good thing.”
However, he notes that subscription products designed to work beyond incentives may prove more resilient.
“We want to make sure that we’ve got a product for consumers, not just now, but also in 2035, or 2040.”
What Fleet Managers should be focusing on now
For fleets heading into 2026, Boucher’s advice centres on fundamentals rather than new technology.
“It doesn’t matter if you’ve got three or if you’ve got 20,000 vehicles in your fleet. Are you getting efficiency out of it? And are you getting the utilisation you require?”
In tighter economic conditions, under-utilised vehicles quickly become a cost burden.
“Every dollar saved is 100 per cent gross margin.”
Subscription may not suit every fleet or every vehicle, but its growing role is clear: a flexible tool to manage uncertainty, utilisation and transition—particularly as fleets balance emissions targets with operational realities.
As Boucher puts it, subscription is not about replacing everything that came before, but offering fleets another option in a market that is becoming more complex by the year.
- Safe Fleet Award Finalists Turn Fleet Data Into Safer Roads
Technology is playing an increasingly important role in fleet safety, but the finalists in the 2026 Fleet News Group Safe Fleet Award are demonstrating that collecting data is only the starting point. The three finalists operate very different fleets, ranging from local government vehicles and plant to construction assets and heavy trucks, but each is - Fleet buyers to put Car of the Year finalists to the testThe finalists in the Fleet News Group Fleet Car of the Year Awards will face their most important assessment in August, when the judging panel comes together for two days of driving, inspection and evaluation. All finalists will be on display during the judging program, giving the judges an opportunity to compare the vehicles side
- How Blacktown cut daily fleet defects from 17 pages to a handful of itemsBlacktown City Council is a finalist in the Fleet of the Year category in the 2026 Fleet News Group Awards. In the second article in our six-part series, we look at how the council shifted from reactive repairs towards a more proactive maintenance model. For a fleet supporting waste collection, street cleaning and other essential
- Yoogo Fleet Adds Mobile Servicing Through Turners PartnershipYoogo Fleet has expanded its Digital Concierge platform with mobile vehicle servicing through a new exclusive partnership with Turners Servicing & Repairs. The partnership means fleet drivers can now arrange for vehicles to be serviced or repaired at their workplace or home, reducing the disruption associated with taking vehicles to a workshop. Turners Servicing &
- Toyota HiLux BEV off-road review: The quiet achiever goes bushThere is something faintly suspicious about climbing a rocky hill in a HiLux and hearing almost nothing. Normally, a serious off-road climb has a soundtrack. There is diesel revving, tyres scrabbling, a little gravel being aggressively relocated and someone in the passenger seat asking whether that rock was meant to be there. The Toyota HiLux
