Amazon is expanding its Amazon Autos business by
adding major new brands and rolling out to more cities.
Over the past 18 months, the company has broadened its platform beyond its initial exclusive partnership with Hyundai
to include vehicles from Jeep, Chevrolet, Kia, Mazda and Subaru. Amazon Autos is now available to customers in over 130 cities, including Los Angeles, Dallas and New York, the company said.
A customer’s ZIP code determines which brands are available. In Detroit, for example, inventory remains limited to Hyundai.
In some markets, the addition of new
brands transform Amazon Autos from a limited pilot into a comprehensive multibrand marketplace.
The growth strategy focuses on both inventory depth and geographic reach.
Amazon’s new-car marketplace, which opened in December 2024, currently offers listings at “hundreds of trusted, qualified dealerships across the country. Only approved dealers
can sell through Amazon Autos. Dealers go through Amazon’s onboarding, including identity and operational verification, to ensure a trustworthy experience,” according to the
website.
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The partnership between Amazon and Hyundai was first announced in November 2023.
The Amazon Autos platform continues to operate on a
marketplace model where local dealerships list their inventory, set haggle-free upfront prices, and maintain the customer relationship for final pickup and delivery.
Amazon
wants to make buying a car feel more like buying other things on its site, notes GuruFocus, getting rid of some of the friction and making the experience more familiar.
For
investors, this move is another sign that Amazon is moving beyond its core retail operation into big, high-value areas. The next question is whether this expanded expansion can turn convenience into
real growth.
“Looking ahead, the aggressive move positions Amazon to compete more directly with established online car retailers and traditional digital listing sites,
leveraging its massive Prime member base and trusted checkout infrastructure to potentially capture a larger share of the car-buying market,” according to Seeking Alpha.
