Hertz Stock Surges Over 8% on Amazon Used Car Partnership
Deal to sell certified pre-owned vehicles on Amazon Autos pressures rival Carvana as Hertz expands its digital retail footprint.
Hertz Global Holdings (HTZ) shares surged 8.57% to $5.83 on Friday after the company announced a strategic partnership with Amazon to sell its certified pre-owned vehicles directly on the e-commerce giant's platform.
The collaboration will allow customers to browse, finance, and purchase thousands of Hertz-certified used cars through Amazon Autos. The initiative is set to launch in several key U.S. cities, including Dallas, Houston, Los Angeles, and Seattle, with plans for a nationwide expansion across Hertz’s 45 U.S. locations.
The move marks a significant step for Hertz in expanding its digital footprint and tapping into the lucrative secondary automotive market. The announcement sent ripples through the industry, negatively impacting competitors like Carvana (CVNA), whose shares declined following the news. Hertz had previously partnered with Carvana in 2021, and this new Amazon deal could redirect a significant volume of used vehicle inventory away from Carvana's platform.
This partnership positions Hertz to capitalize on the rapidly growing U.S. used car market, which is projected to reach $1.20 trillion by 2030, according to data from Mordor Intelligence. The growth is largely fueled by rising new car prices, which are pushing more consumers toward certified pre-owned vehicles.
While traditional offline channels still dominate the market, online sales represent the fastest-growing segment, with a projected compound annual growth rate of 5.31% through 2030. Hertz's strategy aligns directly with this digital transformation, leveraging Amazon's massive consumer reach to bolster its vehicle sales division.