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Hertz and Amazon partner on used car sales; expansion to 45 US cities planned

Hertz has entered into a new partnership with Amazon Autos to sell pre-owned vehicles directly on the e-commerce platform, in a move designed to expand the car rental company’s retail footprint and boost profitability.

The arrangement, which went live on Wednesday, allows customers in Dallas, Houston, Los Angeles, and Seattle to browse thousands of Hertz cars, complete paperwork digitally, and collect vehicles at Hertz locations.

Hertz plans to scale this to 45 cities across the United States, with the tie-up also marking an important step in Amazon’s growing push into the automotive sector and online retail expansion.

Amazon Autos adds Hertz fleet to online marketplace

Through the deal, Hertz becomes Amazon Autos’ first fleet dealer, listing vehicles from Ford, Toyota, Chevrolet, Nissan, and other brands.

Customers within 75 miles of the four launch cities can immediately access Hertz’s online catalogue, while those in other regions will be able to use the service as it expands.

The arrangement follows Amazon’s December launch of its autos business via a partnership with Hyundai, and the subsequent addition of used and certified pre-owned cars earlier this month in Los Angeles.

Shares of Hertz rose sharply in premarket trading after the announcement, highlighting investor interest in the company’s renewed retail focus.

Hertz, which sells hundreds of thousands of vehicles annually alongside its car rental business, said the partnership provides greater visibility for its used car sales operations.

Digital-first approach to vehicle purchases

The collaboration allows buyers to handle the entire purchasing process online, including browsing, financing, and e-signing documents before collecting their car in person.

This reflects a wider industry shift towards digital-first transactions, as companies aim to meet customer demand for convenience and speed.

For Hertz, the integration with Amazon represents an opportunity to streamline distribution of its used vehicles and expand beyond traditional showrooms.

The company’s Rent2Buy programme, which lets customers trial vehicles for three days before deciding to purchase, will also benefit from the added exposure.

Hertz has confirmed that the scheme will expand to more than 100 US cities, complementing the Amazon partnership and further diversifying its sales channels across the country.

Hertz retail strategy after bankruptcy and EV setback

Hertz’s move comes against the backdrop of its turnaround efforts following bankruptcy during the Covid-19 pandemic in 2020 and a stalled electric vehicle strategy that was later abandoned.

Last year, the company introduced its “Back-to-Basics Roadmap” plan under CEO Gil West, focusing on cost efficiency, revenue optimisation, and stronger fleet management.

The first quarter of this year was Hertz’s strongest ever for retail car sales, providing momentum for its expansion into e-commerce.

By joining forces with Amazon Autos, the company seeks to capitalise on growing online demand while further diversifying revenue beyond rentals and strengthening its long-term strategic position.

The post Hertz and Amazon partner on used car sales; expansion to 45 US cities planned appeared first on Invezz

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