AAM Group’s Mycardirect vehicle subscription business has celebrated reaching its profitability targets 18 months ahead of schedule as it celebrated two years in business.
AAM, previously Alliance Asset Management group, officially launched Mycardirect in September 2020 but the business described the fledgling mobility operation’s success since then as “nothing short of remarkable”, adding that it had proved “vindication for the group’s decision to invest £6.5m in the project”.
The business achieved profitability in the space of 18 months and has helped AAM, which also operates the Onwrd and BestCarFinder brands, to sales grow 46% to £23m in the 12 months to June 2022.
AAM said that Mycardirect now has over 3,000 vehicles available for subscription, with electric vehicles (EV) and hybrids making up 40% of that volume.
Group chairman David Murray-Hundley said: “Mycardirect has done a great team job as part of the revenue increase for AAM Group this year. This is particularly pleasing in a time of challenging new vehicle supply issues and a cost-of-living crisis which is putting pressure on consumers and businesses.
“I am proud of the whole team, who, collectively, have put the group into profit. Our focus must be to remain cash positive at a time when all businesses are experiencing challenges in the current economic climate.”
Mycardirect chief executive Duncan Chumley said: “I am very proud of what has been achieved in turning a start-up company into a profitable business within 18 months.
“Mycardirect’s car subscription product appeals to both retail and business customers and that goes to the heart of our success.
“The flexibility we offer gives individuals and companies the confidence and peace of mind to choose a vehicle, safe in the knowledge that if circumstances change, they can switch vehicles or reduce, extend or cancel the contract to suit.
“I am confident that this excellent proposition will herald further growth over the next two years.”
Last month AM reported how recently relaunched car subscription business Karzoom was offering car retailers the ability to enter the mobility sector.
Launched by former ASE chief commercial officer Mike Fazal, Karzoom aims to partner retailers across the UK to tap into new revenue streams from a fleet of subscription vehicles.
The AM100’s Hendy Group, its South Coast partner, was the first to deliver the new offering via its HendyGo division.