Hertz Global Holdings announced its car sales unit is collaborating with Amazon.com by launching a new automotive retail platform, Amazon Autos, to sell pre-owned vehicles. This news sent Hertz's shares up 7% in early trading.
This move is a significant step in Hertz’s broader transformation strategy. The strategy includes forging innovative technology partnerships to provide a more seamless customer experience.
The expansion of Amazon Autos into used-vehicle sales will be supported by this collaboration. Hertz and Amazon will begin 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.
For the context, Amazon has launched Autos the previous 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 has been pressured by huge rental demand, forcing it to shed much of its electric-vehicle fleet in favor of gas-powered cars over the past few years. 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 augmented 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.
Executive Statement
According to Adams, Executive Vice President of Hertz Car Sales, the goal is to reimagine the car-buying experience and meet customers where they are – whether online or in person – with convenience, confidence, and scale. Amazon Autos is the ideal partner to help them deliver on this, as customers can shop their expansive inventory of high-quality used cars on the same trusted marketplace where millions shop every day.
