Amazon Will Start Selling Cars, But You Won't Escape The Dealer Completely
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If you've ever imagined ordering a car from Amazon, it is now a reality. The e-commerce titan has partnered with Hyundai to sell cars, and ease a few other aspects of car ownership, starting next year. However, it isn't entirely a seamless process akin to ordering a packet of pancake premix and getting it delivered to your doorsteps. Your local Hyundai dealer is still an integral part of Amazon's newfound camaraderie with the South Korean automaker.
What actually changes for customers is that they can visit Amazon, look up the specific Hyundai car configuration they want, pay for it online, and then pick it up from their local dealership. Essentially, Amazon is onboarding Hyundai dealers as online sellers on its platform. However, it seems Hyundai isn't the only brand that has signed up for the idea, even though it is the first one in the industry.
The foundations for Amazon's car ambitions were laid a while ago. The platform already has digital car showrooms and dedicated product pages that have been live since 2016. Back then, it was merely a segment of the Amazon Automotive efforts that allowed car enthusiasts to get detailed information on cars, and also shop for genuine parts and accessories from verified sellers covering brands like Tesla and Ford.
More Alexa inside Hyundai cars
Amazon's partnership won't be the first time that the online platform has facilitated car sales. In 2013, Amazon listed the Nissan Versa on its website, but instead of a direct sale, it linked a prospective Nissan buyer with a local dealer. Cars purchased via Amazon actually arrived in a massive Amazon-branded box.
In 2016, Morgan Stanley predicted that Amazon could officially get into the business of selling cars, and it specifically mentioned Hyundai as a partner and more aspects of the partnership that were announced today.
Aside from putting up cars for sale via local dealerships, Amazon's partnership with Hyundai also entails leasing its AWS cloud infrastructure to the Korean carmaker. According to Hyundai, the partnership will assist with "manufacturing and supply chain to help optimize production and minimize costs, security and disaster recovery for resiliency, and connected vehicle development to bring new features to drivers."
Of course, it wouldn't be an Amazon business partnership without Alexa creeping into the picture. Starting with Hyundai cars that hit the road in 2025, the car infotainment system will offer hands-free Alexa interaction, just like Echo devices at home. The Amazon Echo Auto is a great example of what such a future could look like inside a Hyundai ride.
Aside from the usual in-car assistant duties, Alexa will also handle chores like controlling smart home devices before the car rolls into the garage, checking door lock status, get traffic updates, and more.