Hertz and Amazon: An Innovative Alliance in the Used Car Market

Key Points

• Hertz is selling used rental vehicles on Amazon Autos in four selected cities.
• Hertz benefits by reaching customers who might not consider buying a used fleet vehicle.
• Amazon benefits from expanding its Amazon Autos offerings.

Pilot Program Details

Amazon is offering used rental vehicles from Hertz through its Amazon Autos service in a pilot program in four cities: Dallas, Houston, Los Angeles, and Seattle. Customers within a 120-kilometer radius of these cities can browse, test, and purchase used vehicles from Hertz entirely online.

Advantages for Hertz

• Hertz sells “hundreds of thousands” of used vehicles annually.
• The list on Amazon Autos can help overcome the stigma associated with used rental cars.
• Hertz gains access to Amazon's extensive customer base.
• Opportunity to improve profitability through increased sales.

Advantages for Amazon

• Helps scale Amazon Autos offers.
• Increases the variety of available vehicles (beyond just Hyundai).
• It expands into the used car market, which represents approximately 75% of car sales in the U.S.
• Potential to become a major player in online car sales without managing its own fleet.

Future Implications

• This partnership could be the first step in the expansion of Amazon's car sales platform.
• If successful, Amazon could seek similar agreements with other fleet operators or car dealerships.
• The goal could be to compete with established used car retailers like CarMax.

This alliance represents a strategic partnership that could benefit both Hertz and Amazon as they explore new avenues in the online used car sales market.