Key Points
Hertz Global (NASDAQ: HTZ) has partnered with Amazon (NASDAQ: AMZN) to sell used vehicles on the Amazon Autos website. This news spurred a 12.5% increase in Hertz’s stock price, rising from $5.20 to $5.85 between August 19 and August 27.
Deal Details
The partnership, currently in a testing phase, allows Hertz to list its used cars on Amazon Autos, with initial availability in Dallas, Houston, Los Angeles, and Seattle. Customers can browse and purchase vehicles online, then pick them up at designated Hertz locations.
Impact on Hertz
Hertz aims to leverage this deal to increase used car sales, diversifying its revenue stream amid struggles in its core rental business, which reported a 7% revenue drop to $2.2 billion in Q2. The company faces challenges in expanding while navigating declining profitability, with a net loss of $104 million in the same quarter. The success of this Amazon partnership may influence the company’s future growth and market strategy.
