Car subscription firm Loopit launches in UK as Mycardirect eyes international growth

Australian car subscription provider Loopit’s ‘subscription in a box’ mobility solution has been launched into the UK market as Mycardirect secured additional funding to drive its growth this week.

Loopit claims to generate additional income for car retailers and fleet providers by powering new opportunities in a sector which it expects to be worth between $30 billion and $40bn in the US and Europe by 2030 – accounting for 15% of all new car sales.

The business has a significant market share in Australia, claiming to power over 80% of car subscription providers, with over 500 individual dealer franchises using the platform.

Loopit said that its cloud-based process is best described as a ‘subscription in a box’. It provides an end-to-end fully encrypted solution, including recurring billing, KYC management, vehicle tracking and reporting.

Michael Higgins, the co-founder and managing director of Loopit, said: “We are incredibly excited to launch our business in the UK and to open our first office in London.

“The global automotive industry is evolving at pace and so is consumer behaviour. Consumers want more flexibility and the ability to change their car to suit their needs.

“We are seeing an increasing number of people move away from the traditional idea of car ownership.”

Car retailers and OEMs are seeing growth from car subscrition packages.

Volvo’s car subscription service, Care by Volvo, delivered 2,500 cars to customers in its first year, accounting for 15% of all its UK retail sales.

Stellantis plans to accelerate its turnover from software-enabled services and subscriptions to €4bn (£3.4bn) in 2026 and €20bn (£17bn) in 2030 as its transitions to a new role as a “sustainable mobility tech company”.

Meanwhile, Cazoo has made subscrition part of its European growth mission, most recently through the acquisition of Swipcar.

AAM Group’s Mycardirect vehicle subscription company, meanwhile, is poised for expansion both in the UK and interbnationally following investment from Pario Ventures.

Mycardirect launched in 2020 and already claims to be “one of the largest car subscription businesses in Europe”.

AAM Group, established in 1997, is a leading provider of bespoke MaaS, working with car subscription, car clubs, accident management and vehicle rental companies.

Commenting on the new investment attracted by the business, group chief operating officer, Colin Mather, said “The flexibility of car subscription makes it highly attractive to consumers in these times of economic uncertainty.

“There is no long-term commitment, insurance and maintenance is included, monthly costs are known and a vehicle can be exchanged or returned as personal circumstances change.

“AAM Group’s infrastructure, vehicle supply channels and industry experience create an unrivalled opportunity to service this growing market through our branded company, Mycardirect.

“We welcome David Murray-Hundley to the board; his experience and that of the Pario team in driving growth through diverse markets will prove invaluable”.

The chief executive and founder of Pario Ventures, David Murray-Hundley, said: “The car subscription space is one full of relatively young companies that face a number of challenges to grow as a business.

“When Pario Ventures met the AAM Group team, we knew straight away that the Mycardirect brand had the potential to expand rapidly both here in the UK and in the US market.”