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Amazon Vehicles

BHavican

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Jan 11, 2013
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In case you haven't heard, Amazon just launched a new feature called Amazon Vehicles. Right now it's just a resource for information on various vehicles but they're obviously positioning themselves to enter the market. The way the site is built now is similar to other lead generators, but who know's where they'll take it. It's already disrupting the market though as TrueCar's stock, for example, took a pretty big hit today.

Here's an article from CNet.

Any thoughts/predictions on where they'll take this?

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I can't see Amazon go backwards to the ebay model. Amazon's model is all based on the transaction. I can't see them saying "hey, forget what these new companies like Beepi and Carvana are doing, let's go down the road of eBay". If you look at the product page of the vehicles, it could easily be changed to a VDP and compete with Carvana and Carmax's vdp right out of the gate.

Their product page tackles what Carmax does amazingly, user reviews on used vehicles - not dealership reviews. With the automotive customers I talk to, a lot of feedback is tied into that issue.
 
Go deeper Chris, go waaaaayyyy past than lead gen... maybe it'll become a way to purchase a car with an Amazon Prime Experience (i.e. Guarantee).

That escalated quickly...

Amazon Will Now Deliver a Car to Your Doorstep

"Amazon Prime subscribers around Los Angeles will be able to get a Hyundai delivered to their doorsteps for a test drive.

Hyundai has partnered with Amazon to bring an on-demand test drive program to one of California’s most densely populated urban areas as the automaker looks for new ways to reach customers. The on-demand test drive campaign is also a first for Amazon, a company that is constantly seeking out new ways to become entrenched in consumers’ lives."
 
All I can say is that I want my dealer clients to be at the forefront of registering with Amazon as a "third party seller" when the transaction moves online and onto their platform. It's bound to happen. They won't be warehousing cars, so they'll likely choose trusted regional dealerships (by make) as their supply chain (similar to what Uber is doing in some cities). And when that happens, I promise you it will be imperative to be first in line.
 
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