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Carsales says Uber will kill car sharers

AAP logoAAP 8/08/2016 Andrew Leeson

Carsales.com chief says Uber will be the death of car share providers but the global disrupter doesn't worry him.

Services like GoGet will be hit hard as Uber takes the place of taxis and drives down the price of labour, Carsales chief executive Greg Roebuck said on Tuesday as Carsales posted a six per cent increase in full-year net profit to $109 million.

"I think Uber will be the thing that kills car sharing," Mr Roebuck said.

But he said the industry shake-up doesn't worry him.

"The fact that as a business we have got tentacles in lots of different areas allows us to interact with the new players," he said.

One benefit for his company was seen in recently acquired RedBook Inspect, which currently inspects some of Uber's vehicles, he said.

Carsales' revenue rose 10 per cent to $344 million in the 12 months to June 30 as the company added key sales sites in Chile and Mexico alongside its other overseas offerings.

"We need to be a world platform rather than an Australian platform," Mr Roebuck said.

On Tuesday it emerged that News Corp plans to sell its stake in Carsales' competitor CarsGuide.

Global car services supplier, Cox Automotive, announced its proposal to merge its Australian businesses with CarsGuide on Tuesday morning.

Phillip Capital senior client adviser Michael Heffernan said Global car services supplier, Cox Automotive, announced its proposal to merge its Australian businesses with CarsGuide on Tuesday morning.

"If a big brother like Newscorp is moving on, that takes away one pillar of financial strength ... it's got to be positive for Carsales," Mr Heffernan said.

But Mr Roebuck said the market would remain competitive and he wasn't threatened by a new player.

"From day one we have competed with the biggest companies in Australia, it's just part of our DNA to do a good job," he said.

The company was continuing to make strong gains in the new car market, selling directly from dealers alongside the more traditional private listings.

Some manufacturers were continuing to push against online advertisers by refusing to allow dealers to list prices with new vehicles but Mr Roebuck said Carsales always wanted to be a partner with dealers, not disrupt them.

"As much as we could stamp our feet and jump up and down, we would rather work with the car companies and dealers," he said.

Eventually manufacturers would realise the internet had changed the car industry forever, he said.

"You can't sell a secret ... the reality is consumers are informed, consumers are looking for information."

At 1520 AEST Carsales.com shares were up 12 cents; or 0.97 per cent to $12.49.

CARSALES PROFIT SHIFTS UP A GEAR

* Net profit up 6pct to $109m

* Revenue up 10pct to $344m

* Final dividend up 1.8 cents to 19.5 cents, fully franked

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