Amazon.com Inc.
What Happened: According to a report by Automotive News, the platform, which recently transitioned from a closed pilot to a public beta, is now operational in 68 markets, up from 54 in January.
Jin emphasized to Automotive News that the program aims to assist dealers in maximizing inventory clearance. "Our focus is really on dealers and how we serve the whole dealer - all that they want to sell in the way that they want to sell them," she stated.
The initiative is designed to streamline the car-buying process for customers while maintaining the traditional dealership model.
Amazon's expansion into used cars could pose challenges for existing auto retailers.
Why It Matters: The introduction of used cars to Amazon Autos marks a significant step in the company's automotive strategy.
Initially, Amazon Autos launched with new Hyundai vehicles, allowing customers in 48 U.S. cities to order, finance, and schedule pickup directly from local dealers.
This expansion into used cars could further disrupt the traditional car-buying model by offering a more streamlined and convenient process for consumers.
The timing of Amazon's expansion is noteworthy as the used car market faces challenges, including declining prices. A recent analysis highlighted concerns over plummeting used car prices, which could impact demand and pricing strategies for companies like Tesla Inc.
Amazon.com holds a momentum rating of 70.03% and a growth rating of 5.08%, according to Benzinga's Proprietary Edge Rankings. The Benzinga Growth metric evaluates a stock's historical earnings and revenue expansion across multiple timeframes, prioritizing both long-term trends and recent performance.
