Amazon Expands Auto Push to Take eBay Motors' Turf

Core Insights - Amazon has launched a platform for selling used vehicles, starting with Hyundai dealers in Los Angeles, and plans to expand to more brands and cities in the future [1][2][4] Group 1: Amazon Autos Platform - Consumers can now browse, compare, and purchase used and certified preowned Hyundai vehicles directly on Amazon, with a 3-day, 300-mile return policy and a minimum 30-day, 1,000-mile limited warranty [2] - The program builds on Amazon's existing relationship with Hyundai, which was the first car manufacturer to allow Amazon to sell its cars directly [3][4] Group 2: Market Expansion and Strategy - The service is set to expand to 130 U.S. cities, with additional used car options being introduced in Los Angeles and other cities in the future [4] - JPMorgan analyst Rajat Gupta views this initiative as a new lead generation channel for car dealers, indicating minimal risk of disintermediation due to franchise regulations and the complexities of used car sourcing [4][5] Group 3: Dealer Relationships - Dealers are expected to maintain customer relationships during the vehicle handoff, as Amazon's model allows them to focus on in-person interactions [5] - There is skepticism regarding dealers listing their inventory without guaranteed finance and insurance commissions, which could impact the platform's success [5] Group 4: Related Partnerships - Hyundai has also partnered with Avride to develop autonomous vehicles, which may complement Amazon's automotive initiatives by exploring autonomous delivery services [6]