Key Takeaway
- Amazon announced a deal with Hyundai Motor Group at the Los Angeles Auto Show Thursday.
- The e-commerce giant will launch online car sales next year and Hyundai cars will have built-in Alexa devices starting in 2025.
- The South Korean firm will also tap Amazon Web Services for cloud storage and digital technologies.
Amazon (AMZN) will be able to sell you a car next year.
As a part of a partnership with Hyundai Motor Group, Amazon will sell the vehicles on their platform to U.S. customers beginning next year, the two companies said Thursday at the 2023 Los Angeles Auto Show. The South Korean company agreed to use Amazon Web Services (AWS) as its preferred cloud provider and build Alexa devices into its next-generation vehicles.
In a statement about the partnership, Amazon said that this partnership is the launch of an online vehicle sale program in the U.S.
Amazon’s CEO Andy Jassy said the partnership would allow customers to order Hyundai vehicles with ease, picking up the car at a local dealership. The use of Alexa in Hyundai’s vehicles would mean users can access “entertainment, shopping, smart home adjustments, and calendar checks” on the move starting in 2025.
Customers will be able to browse Amazon for available vehicles in their area based on specific preferences, such as model, color, and other features. They can then check out using the familiar Amazon online experience with their chosen payment and financing options.
News of the partnership has already sent ripples through the market with shares in online car dealers Carvana (CVNA) and CarMax (KMX) both losing almost 6% of their value on Thursday.