Amazon (NASDAQ:AMZN) has unveiled a strategic partnership with Hyundai Motor Company at the 2023 Los Angeles Auto Show, aiming to elevate the customer experience and extend its footprint in the online car sales arena.
The collaboration will introduce online vehicle sales in the United States starting in 2024, enabling customers to seamlessly browse available vehicles, select their preferred models, and complete the purchase online using their chosen payment and financing options. Amazon aims to enhance convenience and awareness for customers through this streamlined online car buying process.
As part of the partnership, Hyundai’s upcoming vehicles will feature an integrated Alexa experience. This addition will provide an enhanced virtual assistant experience for customers purchasing Hyundai’s next-generation models. Beyond typical virtual assistant capabilities, drivers will be able to control their smart homes while on the road, further integrating technology into the driving experience.
Moreover, Hyundai has chosen Amazon Web Services as its preferred cloud provider, solidifying the collaboration and leveraging Amazon’s cloud capabilities for various applications.
This move represents a significant stride for Amazon into the online car sales space, aligning with the company’s broader strategy to strengthen its position in the thriving e-commerce market. Reports project the global online car buying market to reach $563.8 billion by 2028, with a CAGR of 11.1% between 2023 and 2028.
Amazon’s foray into the online car market aligns with its overall growth strategy, which has already seen successful collaborations with Snap, Meta Platforms, and Shopify. These partnerships aim to enhance user experiences and streamline access to Amazon products within popular social apps.
The collaborative efforts with various companies are expected to contribute to Amazon’s online store sales, which are projected to reach $2.28 trillion in 2023, indicating a 3.8% growth from the prior year. Anticipated revenues for 2024 and 2025 are $2.5 trillion and $2.76 trillion, respectively, showcasing a year-over-year growth of 9.9% and 10.1%. Amazon’s shares have gained 72.8% year-to-date, outpacing the industry’s rise of 45.2%, reflecting investor confidence in the company’s strategic moves and market potential.
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