Question · Q2 2026
Dylan Bieber from William Blair inquired about the impact of safety adoption and expansion on Karooooo's acceleration, specifically regarding subscriber additions, touch rates on newer offerings, customer willingness to adopt multiple products upfront, and the supporting health in the ARPU growth algorithm. He also asked about maintaining healthy unit economics while adding capacity across territories, new REP/REMP contribution, and the current state of sales capacity versus demand. Finally, he sought insight into the drivers of momentum in the South African market and the opportunity for multiple product cross-sell outside of South Africa.
Answer
Zak Calisto, Founder and Group CEO, explained that group ARPU grew by 4%, with an initial target of 10% for South Africa, which is now on track. He identified the primary bottleneck as the ability to build sufficient teams for onboarding new customers and cross-selling new products, noting that demand currently exceeds delivery capacity. For South Africa, he attributed momentum to the recent move into a new building, enabling faster recruitment and team building for new customer acquisitions and cross-selling. He also mentioned the potential for AI to alleviate pressure on staffing by reallocating jobs.