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What Are Hertz and Amazon Up to Right Now?
The Motley Fool· 2025-08-28 07:55
Core Viewpoint - The partnership between Amazon and Hertz marks a significant development for both companies, as Amazon begins to sell used Hertz rental vehicles through its Amazon Autos service, potentially enhancing sales and customer reach for both parties [1]. Group 1: Amazon's Strategy - Amazon is launching a pilot program in four cities (Dallas, Houston, Los Angeles, and Seattle) to sell used Hertz vehicles, allowing customers to browse, schedule test drives, and complete purchases online [3]. - The partnership with Hertz allows Amazon Autos to expand its offerings beyond new Hyundai vehicles, enabling listings from other brands like Toyota and Ford [4]. - By collaborating with Hertz, Amazon can increase its vehicle listings without the burden of managing an auto fleet, thus minimizing operational costs while generating revenue from sales [9]. Group 2: Hertz's Benefits - Hertz sells "hundreds of thousands" of used vehicles annually, potentially approaching 200,000, which could enhance its sales through Amazon's platform [5]. - Listing vehicles on Amazon, a trusted platform with a vast customer base, may alleviate consumer concerns about purchasing used rental cars, thereby increasing Hertz's market reach [6]. - The partnership provides Hertz with an opportunity to improve its profitability by accessing a larger audience through Amazon's established e-commerce infrastructure [6]. Group 3: Market Potential - If Amazon successfully scales its Amazon Autos service through additional partnerships, it could rival established players like CarMax, which generates tens of billions in annual revenue [10]. - The collaboration with Hertz is seen as a foundational step towards achieving significant growth in the automotive sales sector for Amazon [10].