Hertz Partners with Amazon to Sell Pre-Owned Vehicles
Hertz Global Holdings said on Wednesday its car sales unit was partnering with Amazon.com’s automotive retail platform, Amazon Autos, to sell pre-owned vehicles, sending the car rental company’s shares up 7% in early trading.
The collaboration builds on Amazon Autos’ recent expansion into used-vehicle sales, Hertz said.
Amazon Autos Expansion
Amazon launched Amazon Autos last year to expand the online retail platform’s services to include used and certified pre-owned vehicles, with participating dealers in more than 130 U.S. cities.
Hertz and Amazon will start offering their service within 75 miles of Dallas, Houston, Los Angeles and Seattle, with plans to expand to Hertz Car Sales’ 45 locations across the United States.
Hertz Car Sales Locations
Hertz has a Car Sales location near DFW International Airport in Bedford.
Estero, Fla.-based Hertz Global operates its car rental business through its Dollar, Thrifty and Firefly vehicle-rental brands across 160 countries, and also operates a car-sharing business in Europe.
Hertz Global Operations
Its Hertz Car Sales brand offers used cars for sale online and at locations across the U.S.
Hertz has been pressured by bumpy rental demand, forcing it to shed much of its electric vehicle fleet in favor of gas-powered cars over the past few years.
Challenges Facing Hertz
It has also drawn scrutiny over its AI-powered sensors — used to check returned vehicles for damage — which some customers say have frequently misfired.
Hedge-fund billionaire Bill Ackman boosted his stake in Hertz earlier this year to nearly 20% through his investment management company Pershing Square, expressing confidence in the management’s efforts to reduce costs to improve profit margins over the next several years despite ongoing tariff pressures.
Investor Confidence
The partnership with Amazon is expected to boost Hertz’s sales and revenue, and investors are watching the company’s progress closely.
With the collaboration, Hertz and Amazon aim to provide customers with a seamless and convenient car-buying experience, both online and in-person.
Business Briefing
Conclusion
In conclusion, the partnership between Hertz and Amazon is a significant development in the automotive retail industry, and it is expected to have a positive impact on Hertz’s business.
With Amazon’s vast customer base and Hertz’s extensive network of car sales locations, the collaboration is well-positioned to succeed.
Frequently Asked Questions
Q: What is the partnership between Hertz and Amazon?
A: The partnership is between Hertz’s car sales unit and Amazon’s automotive retail platform, Amazon Autos, to sell pre-owned vehicles.
Q: Where will the service be available?
A: The service will be available within 75 miles of Dallas, Houston, Los Angeles, and Seattle, with plans to expand to Hertz Car Sales’ 45 locations across the United States.
Q: What types of vehicles will be sold?
A: The partnership will sell pre-owned vehicles, including used and certified pre-owned vehicles.
Q: How will the partnership affect Hertz’s business?
A: The partnership is expected to boost Hertz’s sales and revenue, and provide customers with a seamless and convenient car-buying experience.
