Hertz and Amazon Forge Alliance to Transform the Car Market

Author: Owen Jenkins Updated: 08-23-2025 04:57 AM

Hertz Stock Soars with Amazon Collaboration

Hertz Global Holdings Inc. (NASDAQ: HTZ) experienced a notable surge in its stock price, increasing by 8.57% to reach $5.83 following the exciting news of a new partnership with Amazon. This collaboration enables Hertz to offer certified pre-owned vehicles through the Amazon Autos platform, marking a significant shift in how customers can purchase cars.

Expanding Digital Footprint

The partnership allows customers to easily browse, finance, and purchase from a selection of Hertz-certified vehicles, all accessible through Amazon’s expansive marketplace. The initial rollout of this service will occur in key U.S. cities, including Dallas, Houston, Los Angeles, and Seattle, with plans to expand it across Hertz’s 45 locations, fundamentally altering the car buying experience for many.

Impact on Competitors

Following the announcement, competitors like Carvana Co. (NASDAQ: CVNA) experienced declines in their stock prices, illustrating the potential impact of this partnership on market dynamics. Hertz had previously collaborated with Carvana to facilitate vehicle sales, but the new Amazon association could redirect a significant amount of inventory away from Carvana's platform, intensifying competition in the pre-owned vehicle segment.

Growth of the Pre-Owned Market

Market analysts forecast a vast expansion of the U.S. used car market, predicting it will grow to $1.20 trillion by 2030, increasing at a compound annual growth rate (CAGR) of 2.71%. This growth is attributed to rising prices of new vehicles, which are pushing the average payment upwards. Additionally, Hertz’s focus on certified pre-owned vehicles aligns perfectly with consumer demand for more affordable options.

Interestingly, online sales channels are predicted to be the fastest-growing segment in the automotive market with a remarkable CAGR of 5.31% through 2030, even as offline sales maintain a significant share. This digital evolution perfectly complements Hertz’s initiative to enhance its online retail presence in the fast-evolving pre-owned vehicle sector.

Hertz’s Market Position

As a leading global vehicle rental company, Hertz operates with a strong market capitalization of approximately $1.81 billion and an average trading volume of 8.28 million shares. Additionally, the latest data suggests a positive momentum for Hertz, with its stock rated in the 89th percentile for performance. This indicates short to medium-term consolidation and long-term positive trends, as suggested by various stock ranking metrics.

Frequently Asked Questions

What recent event caused Hertz's stock to rise?

Hertz's stock rose by 8.57% due to a new partnership with Amazon to sell certified pre-owned vehicles.

How will the partnership with Amazon benefit Hertz?

The partnership allows customers to purchase Hertz-certified vehicles through Amazon’s platform, increasing Hertz's market reach and sales potential.

What impact does this partnership have on Carvana?

The partnership could potentially redirect sales away from Carvana, impacting its stock performance negatively as it increases competition in the market.

What is the projected growth of the U.S. used car market?

The U.S. used car market is expected to reach $1.20 trillion by 2030, growing at a CAGR of 2.71%.

What is Hertz's current market position?

Hertz has a market capitalization of approximately $1.81 billion and is experiencing positive stock momentum.

About The Author

Hi there I'm 38-year-old author and financial consultant Owen Jenkins. Having worked in the financial sector for more than ten years, I am well-versed in the subtleties and complexity that mold our financial environment. Following a degree in finance, I worked in a number of financial institutions honing my abilities in market analysis, financial planning, and investment strategies.

My love is teaching others about investing and personal finance. My goal in writing many books and articles has been to demystify financial ideas and give readers the information they need to make wise financial decisions. I write with a direct, useful style that emphasizes doable suggestions for daily living.

Along with writing, I lead webinars and seminars where I impart knowledge on how to successfully negotiate the financial world. I also write for financial journals and show up as a guest expert on financial news programs a lot. Whether they are new to investing or want to improve their approach, my mission is to enable people to take charge of their financial futures.

Beyond work, I like to hike, play the guitar, and spend time with my family. I think that balance is crucial and want to encourage people to strike a balance between their financial aspirations and their hobbies. I want to help people succeed and achieve financial security through my work, so having a good influence.

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