Carbar founder Des Hang on why consolidation is a sign that your startup’s market is maturing

Remember when car subscription services were the next big thing?

Around the late 2010s, they were everywhere, hailed as the future of driving.

But like any new idea that grows quickly, the car subscription market started to get crowded. Startups emerged across the globe. Legacy carmakers jumped in. Rental giants began experimenting.

Everyone wanted a piece of the action.

Now, we’re entering the next chapter: consolidation.

Around the world, we’re seeing big players merge and smaller ones get bought up. ALD Automotive has acquired LeasePlan, Cazoo has snapped up subscription startups across Europe, and Cox Automotive is on a spree in the US.

Carbar’s Des Hang. Photo: Elke Meitzel

In Australia, it’s happening too. At Carbar, we recently acquired Carly Car Subscription, and Karmo recently took over Motopool.

Some might see this as a sign of trouble. But to me, it’s a sign of maturity.

The early hype has settled. The business model has proven its worth.

And now it’s about building the infrastructure, scale, and customer experience to make subscriptions a long-term option for more people.

There’s a good reason the model took off in the first place: it fits how people want to live. We’re used to streaming our music and renting our homes.

Flexibility matters. And in an era of rising living costs and rapid tech change—especially around electric vehicles (EVs)—locking into a five-year car loan just doesn’t make sense for everyone.

In Australia, the car subscription market was worth $86.6 million in 2024 and is projected to grow by nearly 25% each year through to 2033. That’s serious momentum. But to keep growing, we need to build smarter systems. Bigger, more stable providers can do that, offering more car options, better tech, and stronger customer support.

They also make it easier to solve big problems. EV adoption, for instance. Subscriptions give drivers a way to try an EV without buying one outright. That removes a huge barrier. And with more data, companies like Carbar can help map where EV infrastructure is needed, what types of vehicles work best for different lifestyles, and how to make it all more affordable.

But we shouldn’t just copy what’s happening overseas. Australia’s needs are different. We’re spread out. Public transport is patchy. And while our policies are starting to catch up, we still have a way to go on building the infrastructure that supports clean, flexible transport.

That’s why this moment matters. The wave of consolidation isn’t about tidying up the market, it’s about setting it up for the next decade. Our recent acquisition wasn’t just about scale. It was about building the foundations for a smarter, more user-friendly future. A future where car access works more like a service, and less like a life decision.