Amazon (ticker: AMZN) announced on Thursday that it will soon be offering online sales of vehicles. Starting next year, customers will be able to browse and purchase cars on Amazon’s website. The first brand available for purchase will be Hyundai, which has named Amazon Web Services as its preferred cloud-computing provider for this new endeavor.
Hyundai’s CEO, Jaehoon Chang, expressed enthusiasm for the partnership, stating, “Amazon is the ideal partner to help realize our vision of progress for humanity, including improving how people and goods move more efficiently and sustainably.”
The process for buying a car on Amazon will involve customers browsing available vehicles near their location, selecting their preferred payment or financing option, and then choosing whether to have the vehicle delivered directly to them or shipped to a local dealership.
While Amazon shares were down slightly on Thursday, this news had a significant impact on the stock prices of Carvana (CVNA) and CarMax (KMX). Carvana saw an 8.4% drop in its stock price, although it has experienced a staggering 560% increase this year. CarMax’s stock had already been declining, but it dropped an additional 7.2% after the Amazon announcement. Despite this setback, CarMax has seen a 3.5% increase in its stock price this year.
Amazon’s move into automotive sales marks a major expansion for the e-commerce giant, allowing consumers to make some of their most significant purchases through the familiar online platform. As the company continues to disrupt various industries, it will be interesting to see how this new venture unfolds.