Karmo has partnered with AGL to manage the energy company's electric vehicle subscription fleet, expanding access to EV subscriptions across Australia.
Under the arrangement, Karmo will take over management of AGL's existing EV subscription fleet and platform operations. The move is intended to support customers shifting from petrol vehicles to electric driving through a subscription model rather than outright ownership or a conventional lease.
The deal combines Karmo's vehicle subscription platform and fleet operations with AGL's broader electric mobility business. AGL has been building EV-related offers including home charging, public kerbside charging and energy plans tailored to EV owners, while Karmo focuses on subscription access to vehicles.
The partnership comes as Australian consumers weigh the cost and practical implications of moving to EVs. Subscription models have emerged as one option for motorists who want to avoid long commitments or try EV use before buying.
Customers in the programme will be supported through Karmo's national operational network, including customer service and fleet management. Subscribers will pay a single fee covering registration, servicing, maintenance, insurance and roadside assistance, with the option to change vehicles as their needs change.
Nick Boucher, Chief Executive Officer and Co-Founder of Karmo, said the arrangement marked an important step for the business as it broadens its role in the electric mobility market.
"Today marks another pivotal moment for Karmo as we officially announce our strategic partnership with AGL. Together, we are launching an innovative suite of personal and novated electric vehicle subscription plans designed to completely reshape how Australians access, drive, and integrate renewable mobility into their daily lives," Boucher said.
Karmo also linked the tie-up to demand for alternatives to traditional salary-packaging products. Part of the offer will target workers seeking the tax benefits associated with novated arrangements without the long fixed terms often attached to conventional leases.
"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. Our new flexible novated subscription gives working Australians the maximum tax savings of a novated lease, but with the freedom to choose, drive, and swap the latest EVs as their lifestyle dictates. The road ahead is electric, and together with AGL, we are making it simpler and more affordable to get behind the wheel," Boucher said.
Market shift
AGL presented the partnership as part of a broader push into electrification as households and drivers look for lower running costs and new energy services. Demand for home electrification products has remained firm, supported by household budget pressures, policy incentives and a desire for greater control over energy use.
Mabelle Reyes, Head of eMobility at AGL, said the company sees EV subscriptions as one part of a wider strategy around how Australians travel and use energy.
"This builds on our existing EV offers and our broader strategy to electrify the way Australians live, move and work, whether through EV subscriptions, home charging, public kerbside charging or tailored energy plans like our EV Night Saver," Reyes said.
For energy retailers, transport electrification creates an opportunity to sell bundled products around charging, tariffs and vehicle access. For mobility providers, it offers a route to scale by linking cars to broader household energy decisions. That overlap has become more visible as power companies move further into electric transport and car access providers seek partners with energy expertise.
AGL said uncertainty remains a hurdle for many consumers considering a move to EVs, especially those switching from petrol vehicles for the first time. Subscription access can reduce some of that hesitation by limiting the commitment and packaging running costs into one payment.
"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," Reyes said.
"That momentum is flowing directly into eMobility, 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," Reyes said.
Broader context
Karmo was founded in 2019 and describes itself as Australia's largest car subscription platform. The company has positioned subscriptions as an alternative to ownership by allowing drivers to swap vehicles over time rather than commit to a single model.
AGL serves about 4.6 million customer services across energy, telecommunications and entertainment. It is one of the country's largest energy providers and has been expanding its retail offers around electrification in response to changes in household energy demand.
Both companies said the arrangement could support further work as vehicle-to-grid technology develops. That technology would allow EVs to feed electricity back into the grid or a home battery system, linking transport assets more closely with energy management.
The partnership reflects a wider shift as car access, charging and electricity supply are increasingly packaged together.