Characters have been in Smash Karts since the start of the game.
Characters sit in your kart and often have their hands on the steering wheel. Some characters have their hands sticking out of their kart (e.g. Diamond Blade). There are 4 different rarities of characters: Common, Uncommon, Rare and Epic. Traditionally, characters were only available via the Character Token Machine, but with the Seasons and Challenges update (3.0.0), they have been available via other methods.
Characters are available for Character Tokens, Coins, Gems, in the Spinners and in the Season Track.