Key Highlights :

Hertz teams up with Amazon Autos to sell used cars from fleets online, sending Hertz's stock up 7%.

The service is set to launch in Dallas, Houston, Los Angeles, and Seattle before a wider rollout across the country.

Customers will have clear prices, inspections, warranties, financing, and simple local pickup.

Key Background :

Hertz Global Holdings is a global leader in vehicle rentals with popular brands like Hertz, Dollar, Thrifty, and Firefly across more than 160 countries. Its Hertz Car Sales business retires vehicles from its rental fleet and sells them at discounted rates for late-model cars. This segment has gained significance with the company looking to diversify beyond rental revenues.

Amazon, in turn, entered the automotive retail business in 2024 through its launch of Amazon Autos. The platform initially sold new cars under partnership with Hyundai, but soon added used and certified pre-owned cars. Amazon Autos currently offers listings through over 130 U.S. cities, bridging consumers to dealerships and car sales divisions. The deal with Hertz is Amazon's inaugural big partnership with a car rental firm and is a key move in its ambitions in the auto-retail space.

The partnership is a win-win. Hertz benefits from Amazon's unparalleled digital access and customer-centric buying platform, while Amazon enriches its marketplace with an assured inventory of vehicles from a reputable fleet operator. Consumers benefit from more convenience, transparency, and assurance in buying used cars online. Cars will be backed by warranties, car history reports, roadside support, and a buy-back program, all aimed at increasing trust in buying cars online.

The rollout plan starts in four large metropolitan areas Dallas, Houston, Los Angeles, and Seattle before rolling out to all 45 Hertz Car Sales locations in the U.S. This staged strategy enables the companies to hone operations as they establish consumer confidence in the new shopping experience. When fully deployed, the alliance could widely increase the size of Hertz's sales network.

Stock markets responded immediately. Hertz's stock jumped on news of the acquisition, demonstrating investor confidence in new sources of revenue and the possibility for better margins for used-car sales. Shares of competitors declined, as the alliance indicated more intense competition in an already changing digital automotive market. While sites such as CarGurus and Cars.com will likely take more pressure, analysts think Carvana's business is less at risk because it gets most of its vehicles from customer trade-ins, not big rental fleets.

Strategically, the alliance arrives at a critical juncture for Hertz. The company has been moving away from previous plans to electrify its fleet following disappointing demand for EV rentals. With an emphasis on traditional cars and using online sales, Hertz wants to stabilize revenues while dipping into the fast-growing online vehicle market. For Amazon, the partnership reinforces its role as a disruptor in another consumer sector.

About the Author

Ryan Parker

Ryan Parker is a Managing Editor at Business Minds Media.