16 hours ago
Hertz partners with Amazon Autos to sell used vehicles online
Aug 20 (Reuters) - Hertz Global Holdings (HTZ.O), opens new tab said on Wednesday its car sales unit was partnering with (AMZN.O), opens new tab automotive retail platform, Amazon Autos, to sell pre-owned vehicles, sending the car rental company's shares up 7% in early trading.
Shares of used-car retailers fell, with Avis Budget Group (CAR.O), opens new tab down 6%, Carvana (CVNA.N), opens new tab losing 4.2% and CarMax (KMX.N), opens new tab shedding 1.4%.
The collaboration builds on Amazon Autos' recent expansion into used-vehicle sales, Hertz said.
Amazon launched Amazon Autos last year to expand the online retail platform's services to include used and certified pre-owned vehicles, with participating dealers in more than 130 U.S. cities.
Hertz and Amazon will start offering their service within 75 miles of Dallas, Houston, Los Angeles and Seattle, with plans to expand to Hertz Car Sales' 45 locations across the United States.
Estero, Florida-based Hertz Global operates its car rental business through its Dollar, Thrifty and Firefly vehicle-rental brands across 160 countries, and also operates a car-sharing business in Europe.
Its Hertz Car Sales brand offers used cars for sale online and at locations across the U.S.
Hertz has been pressured by bumpy rental demand, forcing it to shed much of its electric-vehicle fleet in favor of gas-powered cars over the past few years.
It has also drawn scrutiny over its AI-powered sensors - used to check returned vehicles for damage - which some customers say have frequently misfired.
Hedge-fund billionaire Bill Ackman boosted his stake in Hertz earlier this year to nearly 20% through his investment management company Pershing Square, expressing confidence in the management's efforts to reduce costs to improve profit margins over the next several years despite ongoing tariff pressures.
