Amazon is about to get into the business of selling cars

Amazon is about to get into the business of selling cars

Posted on Inc. announced today that next year, it will allow automakers to sell cars on its e-commerce platform, starting with South Korean firm Hyundai Motor Co.

The company has been indirectly involved with cars for some time now through its “Amazon Vehicle Showrooms,” giving customers the ability to peruse digital showrooms where they can compare deals on various cars, but this is the first time Amazon will actually let shoppers make a car purchase on the platform.

Starting sometime in 2024, several Hyundai dealerships will work with Amazon, with Amazon only acting as a middleman. Consumers will be able to browse Hyundai cars, pay for one through Amazon, and then either have it delivered to their door or go pick it up themselves. It’s not certain right now which other dealers, if any, will work with Amazon in the future.

The partnership will mean that Hyundai will use Amazon Web Services as its go-to cloud provider and will also integrate the Alexa voice assistant in its next-generation vehicles starting in 2025.

“Hyundai is a very innovative company that shares Amazon’s passion for trying to make customers’ lives better and easier every day,” said Amazon Chief Executive Andy Jassy. “Our broad, strategic partnership should do just that, from changing the ease with which customers can buy vehicles online to making it simple to use Alexa in Hyundai vehicles for entertainment, shopping, smart home adjustments, and calendar checks to enabling Hyundai to transform their customer experiences and business operations by moving to AWS.”

It’s well known that the majority of Americans hate making a car purchase, with many people feeling the experience of the showroom is plain stressful. Surveys show most people don’t enjoy the negotiating part, which often entails a lengthy session in the dealership. E-commerce has always looked like the obvious solution to this problem, but the transition has never really taken off. Amazon might be onto something here. The fact the stressful part is now taken out is, according to some people in the auto industry, going to attract consumers.

Photo: Christian Wiediger/Unsplash

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