What does the Amazon-Hertz partnership mean for car buyers?

The partnership allows customers to browse, finance, and purchase Hertz's used fleet vehicles directly through Amazon's platform, then collect them at local Hertz locations. This makes buying a used car as simple as any other online purchase, with the convenience and trust of Amazon's e-commerce experience.

Why is digital transformation important in automotive retail?

Digital transformation is revolutionising how people buy cars by making the process more convenient, transparent, and efficient. Instead of visiting multiple dealerships, customers can compare vehicles, secure financing, and complete purchases online, saving time and often money through reduced overhead costs.

What types of companies benefit from online car sales growth?

Several types of companies benefit including online automotive marketplaces, e-commerce platforms, technology providers that power digital sales systems, logistics companies handling vehicle delivery, and financial services companies offering online auto financing solutions.

How does investing in this theme work?

This investment theme focuses on companies positioned to benefit from the shift towards digital car sales. By investing in a diversified group of stocks across the online automotive value chain, you can potentially benefit from the industry's long-term digital transformation without having to pick individual winners.

What is market capitalisation and why does it matter?

Market capitalisation (market cap) is the total value of a company's shares in the stock market, calculated by multiplying the share price by the number of shares outstanding. It helps investors understand a company's size and can indicate its stability and growth potential.

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Auto Retail Digital Shift: Market Overview 2025

Hertz is partnering with Amazon to sell its used cars online, a move that is shaking up the used-car market. This collaboration highlights the growing trend of digital transformation in automotive sales, creating opportunities for companies that facilitate online vehicle transactions.

Han Tan | Market Analyst

Updated 2 days ago | Published at August 21