Rather than a single announcement or product launch, 2025 was a year of structural change for Karmo as it moved from a consumer-led subscription business to one deliberately designed to service fleet customers.
The shift into fleet was underpinned by investment in people, systems and partnerships—reflecting a recognition that fleet customers bring very different requirements to private subscribers.
According to Nick Boucher, CEO at Karmo, the business resisted the temptation to move too early.
“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.”
Building a fleet team, not just a fleet product
A critical step in Karmo’s fleet strategy was the recruitment of dedicated staff with fleet experience, including the appointment of a National Sales Director and the expansion of a specialist B2B sales team.
“That was really our first entry point into a dedicated B2B channel.”
Rather than repurposing consumer-facing roles, Karmo built a team specifically to engage with Fleet Managers, Procurement Managers and councils—acknowledging that scale, governance and risk management matter more as fleet size grows.
“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.”
This capability was further strengthened through industry consolidation, bringing experienced fleet operators into the business.
“What that did wasn’t just give us that dominant position… it actually created a really strong team around knowledge.”
Partnerships extend reach into fleet channels
Alongside internal capability, Karmo spent 2025 forming partnerships that allow subscription to sit alongside established fleet procurement pathways.
Rather than positioning subscription as a replacement for leasing, Boucher says the aim was to fill gaps that traditional models struggle with.
“There are a lot of smaller operations that just need some leasing-style services, where subscription actually is perfect.”
Partnerships supporting novated leasing arrangements have opened subscription to salary-packaged drivers who want flexibility without long lock-in periods, while access to procurement platforms such as Local Buy has helped councils engage with subscription outside traditional fleet panels.
“It’s not actually falling into a category where they’ve already got suppliers or panels as such, because there’s no subscription.”
These channels have helped shift subscription from an unfamiliar concept to a legitimate option within established fleet frameworks.
Flexibility becomes a procurement advantage
One of the strongest themes to emerge from fleet conversations in 2025 was the need for flexibility—particularly for organisations operating in uncertain or contract-driven environments.
“Why would I not do this for 15 per cent of my fleet or 20 per cent of my fleet?”
Boucher says subscription gives fleet teams a way to manage short-term demand without carrying long-term cost.
“Rather than having dead stock sitting there doing nothing… you’ve got the ability to then return those cars within the 30-day period.”
For procurement and finance teams, this also changes how risk is managed when contracts change or forecasts don’t materialise.
Utilisation back under the microscope
As cost pressure increased through 2025, Boucher observed a renewed focus on utilisation—an area many fleets struggle to address with long-term vehicle commitments.
“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?”
He notes that many fleets continue to carry vehicles that no longer match their operational needs.
“There’s some people that are driving around in vehicles that are too big or not fit for purpose… because that’s just the term that they’ve got.”
Subscription, he suggests, provides a practical way to test change without locking fleets into multi-year decisions.
Outlook for 2026: education and awareness
Looking ahead to 2026, Boucher expects continued interest from fleet customers, particularly if economic conditions tighten.
“If the economy is uncertain and the economy is slowing, that’s actually where subscription is a huge benefit.”
Rather than focusing solely on growth metrics, Karmo’s priority is education—helping fleet decision-makers understand where subscription fits and where it doesn’t.
“Our real focus for 2026 is to grow the awareness of car subscription… so that people are aware that there is an alternative to pretty much 100 years of doing it one or two ways.”
After a year spent building capability, partnerships and credibility, Karmo enters 2026 positioning subscription not as a disruptor, but as another tool fleet managers can use to improve utilisation, manage risk and respond faster to change.
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