On the Dash:
- Hertz is partnering with Amazon Autos to sell pre-owned vehicles online, allowing customers to browse, e-sign, and pick up cars at Hertz locations.
- The collaboration expands Hertz’s digital retail presence, supports its Rent2Buy program, and aims to boost profitability and visibility for its Hertz Car Sales division.
- The partnership reflects Hertz’s broader turnaround strategy under CEO Gil West, including fleet management, cost efficiency, and confidence from investors like Bill Ackman amid fluctuating rental demand and past challenges.
On Wednesday, Hertz Global Holdings announced a partnership with Amazon’s automotive platform, Amazon Autos, to sell pre-owned vehicles, driving a 7% jump in Hertz shares in early trading. The announcement weighed on competitors, with shares of Avis Budget Group down 6%, Carvana off 4.2%, and CarMax falling 1.4%.
The collaboration allows customers to browse thousands of used Hertz vehicles on Amazon Autos, e-sign paperwork, complete their purchase online, and pick up their vehicle at Hertz locations. Initially, the service will be available within 75 miles of Dallas, Houston, Los Angeles, and Seattle, with plans to expand to Hertz Car Sales’ 45 locations nationwide.
Based in Estero, Florida, Hertz operates car rentals under the Dollar, Thrifty, and Firefly brands across 160 countries, along with a car-sharing business in Europe. Its Hertz Car Sales division sells hundreds of thousands of used cars annually online, offering brands such as Ford, Toyota, Chevrolet, and Nissan.
The partnership expands Amazon Autos, launched last December, which now allows customers to purchase used and certified pre-owned vehicles directly through its platform. Hertz is the first fleet dealer to participate, giving the e-commerce giant a wider selection of vehicles and increasing Hertz’s digital visibility.
The move is part of Hertz’s broader strategy to grow its retail business, which includes expanding the Rent2Buy program that lets customers take a used car home for a three-day trial before purchasing. CEO Gil West has emphasized fleet management, revenue optimization, and cost efficiency as key elements of Hertz’s “Back-to-Basics Roadmap” turnaround plan following the pandemic and a failed EV strategy.
Earlier this year, hedge-fund billionaire Bill Ackman increased his stake in Hertz to nearly 20% through Pershing Square, signaling confidence in the company’s management and strategy amid fluctuating rental demand, the reduction of its EV fleet, and scrutiny over AI-powered vehicle sensors.
