Loopit, has launched in the United Kingdom. The announcement marks Loopit’s second international location, and will see the company’s award-winning technology exported to the UK automotive sector to open new opportunities in the fast-growing car subscription space.
Why did Loopit opt for the United Kingdom?
Loopit’s cloud-based end-to-end software solution allows car dealerships, car brands and other companies to offer car subscriptions through a recurring revenue business model. Michael Higgins, Co-Founder and Managing Director at Loopit made these remarks.
“We are delighted to announce our launch in the United Kingdom, further expanding Loopit’s global footprint. Our technology has already proven a success in Australia and New Zealand, and we’re excited to bring this innovative solution to dealers across the United Kingdom.”
“Car subscription is exploding around the globe, and we see immense opportunity to expand the model in the UK – a market that is five times the size of Australia. With our award-winning software solution, Loopit is in an ideal position to lead the growth of the sector.”
What is Loopit’s market reach?
Loopit has experienced tremendous success since first launching in early 2019.
The company launched in New Zealand in 2021 and currently powers more than eighty per cent of retail car subscription providers across the Australia and New Zealand region, including global car rental giant SIXT for the NZ market. This latest announcement will see United Kingdom car dealers and manufacturers also benefit from the Loopit’s leading software.
The car subscription movement has rapidly gained momentum in the wake of the ravaging global pandemic. Europe’s largest carmaker, Volkswagen Group, recently announced a 2.9 billion euro (AUD 4.6 billion) acquisition of global rental giant Europcar, in a bid to accelerate new solutions such as car subscription that complement car ownership.
The Volkswagen Group is the latest global brand to endorse the subscription model, highlighting the massive market opportunity it presents for the automotive industry.
How does Loopit make revenue?
Much like Afterpay transformed the way consumers pay at the checkout with its ‘buy now, pay later’ model, Loopit allows dealers and manufacturers to offer their customers a completely new ‘subscribe to drive’ option alongside traditional sales and finance options.
Loopit’s revenue comes from OEMs, car dealerships and emerging car subscription providers which pay a percentage of the value of each recurring subscription placed by customers, plus a fixed fee. The platform provides dealerships, OEMs and emerging car subscription providers with the software, training and services needed to offer car subscription to customers.
With Loopit integrated onto their websites, partners need to select cars from their stock to make available for subscription. Clients can then choose the car they want to subscribe online.