Cartrack owner Karooooo raises its AI video solutions game

Cartrack owner Karooooo aims to capitalise on growing demand for its video solutions and platform that uses AI to monitor drivers and track vehicle activity. 

In addition to typical vehicle tracking, Cartrack offers a range of dashboard cameras (dash cams) that can monitor the road and environment a car is in, as well as in-vehicle activity.

Using AI, the company said the system could assess the alertness of drivers or warn of collisions before they occur and give a live view of a vehicle, among a host of features.

CEO Zak Calisto told Business Day that better technology and lower prices have seen demand increasing for this offering. 

“We’ve been in AI video since about 2018. The only difference between now and then is [that] it is much faster [and] cheaper and more affordable. In 2018, the only people that could afford it were very large enterprises with a huge need, so they could get an ROI [return on investment] on it.”

Now, “more businesses can afford it. In 10 years, [the technology] will be even better.”

“It creates safety and security for the drivers, with visibility into what’s going on logistically [and regarding] driver behaviour. It has a lot of value ads. You can watch your driver from your office or from the beach, where before you could never do that. You can also train drivers to drive better.”

The group was founded by Calisto in 2004 and is listed on the JSE and Nasdaq.

Calisto was speaking as Karooooo registered another quarter of growth in subscribers and revenue, helping to deliver a rise in operating profit by a quarter. 

Karooooo on Thursday reported a 33% rise in adjusted earnings per share (EPS) to R31.67 in the year to end-February. The group has set its 2026 full-year guidance of EPS at R32.50-R35.50, expecting a lower rate of growth given the group’s planned upfront investment in sales and marketing.

Karooooo’s group operating profit increased 26% to R1.3bn while that of Cartrack grew 19%.

“Full-year 2025 was a year of strong execution, impactful innovation and significant progress,” said Calisto.

“We accelerated customer acquisition, enhanced our platform with more advanced AI video capabilities and other features, and successfully launched the Cartrack-Tag. We remain optimistic about continued healthy organic growth in SA while our investments in Europe are expected to drive accelerating subscriber growth.”

In SA, the group’s main market, Cartrack subscribers increased 16% to 1.73-million by February 28, while subscription revenue growth for the year was 15%.

Calisto reiterated the group’s long-held view that Southeast Asia could be its main driver of growth.

Cartrack subscribers in the region grew 19% to 273,946 by February, with subscription revenue growth of 21% for the period. In constant currency, subscription revenue increased by 31% in Southeast Asia in the fourth quarter.

Overall, Cartrack subscribers increased 17% to 2.3-million, while net Cartrack subscriber additions rose 30% to 330,704.

Karooooo’s subscription revenue increased 15% to R4.068bn, with Cartrack’s subscription revenue rising by a similar percentage to R4.055bn.

Karooooo Logistics’s B2B delivery-as-a-service revenue increased 73% to R420m.

“Our culture of innovation, disciplined execution and customer centricity give us confidence as we aim to accelerate our growth in full-year 2026,” said Calisto.

gavazam@businesslive.co.za