Hertz Global Holdings (NASDAQ:HTZ) shares surged 12% in early trading Wednesday after the company unveiled a new partnership with Amazon’s (NASDAQ:AMZN) online auto platform. In contrast, rival Carvana (NYSE:CVNA) saw its stock drop 5.5% following the news.
As reported by CNBC, the agreement will allow Hertz to sell its pre-owned vehicles directly through Amazon Autos. Customers will be able to browse thousands of used Hertz cars online, complete the purchasing process digitally, and collect their vehicles at Hertz pickup points.
The rollout begins with availability to shoppers within 75 miles of Dallas, Houston, Los Angeles, and Seattle. Hertz plans to expand the service to 45 locations across the U.S. over time.
For Hertz, the initiative is seen as a major step in raising brand visibility and boosting profitability from its robust vehicle sales arm, which already moves hundreds of thousands of cars annually in addition to its rental operations.
For Amazon, the partnership represents a further expansion of its growing automotive marketplace.
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