Mycardirect is expecting to double its revenues this year as demand for vehicle subscriptions continues to grow.

The AAM Group business achieved its profitability targets 18 months ahead of schedule, when it celebrated two years in business in September.

Part of its growth is attributed to the closure of Cazoo’s subscription service, in July last year.

Duncan Chumley, Mycardirect CEO, said: “2022 was an extremely encouraging year for us, and I’m very confident that 2023 will build on last year’s success with record revenues forecasted.

“As more businesses and retail customers discover vehicle subscription and the flexibility and other benefits it offers, I am positive we will continue to see significant growth. Our success story is rooted in our strategy of growing the business organically. Our pricing model is sustainable and our prices are guaranteed for the length of the contract.

“The recent decision of Cazoo to exit the subscription market and to concentrate on their core business is undoubtedly having a positive impact on our new customer order take.”

Mycardirect says EV customers are choosing to subscribe in the confidence that they can switch to a more traditional petrol or diesel vehicle if an EV does not suit their needs. Or, they can simply cancel the contract.

Mycardirect was founded in 2020 as a new web-based car subscription service. It offers all-inclusive packages ranging from one to 24 months, providing maintenance, VED, tyres via one monthly payment.

Industry analysts Frost & Sullivan claim car subscriptions will account for 10% of all new vehicles retailed in the US and Europe by 2025 – 16 million vehicles in total.

In 2019, Motors.co.uk's Consumer Insight Panel survey found that 34.6% of buyers expressed an interest in car subscription services.

Companies including Enterprise and Intelligent Car Leasing, alongside car manufacturers including PSA Group (Wagonex), Lexus (Drover), Volkswagen and Volvo have already launched their own subscription services.

New entrants, including Polestar and Lynk & Co are also focussing on subscription-based platforms.