Could Amazon Open Up Car Dealerships?

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Not content with just dominating online sales, Amazon is expanding its brick-and-mortar efforts and may even open its own car dealerships.

Speaking to Automotive News, head of Amazon research at the L2 research firm, Cooper Smith, said creating a car dealership network could allow Amazon to dramatically expand its presence in the automotive industry.

“The idea is provocative, and it could make sense. They're blurring the lines between e-commerce and brick-and-mortar storefronts,” Smith said.

Although Amazon has failed to comment on the possibility of it opening a dealership distribution network, it wouldn’t be out of character for the e-commerce giant. After all, it recently acquired grocery store chain Whole Foods and sells both Seat and Fiat vehicles in France and Italy thanks to exclusive partnerships with the automakers.

Furthermore, Amazon launched a comprehensive advice hub for car buyers in the U.S. last year.

Inga Maurer, a partner at consultancy McKinsey, says a dealership network would allow Amazon to have access to service and maintenance centers. Consequently, the company could then become a partner for ride-hailing and car-sharing fleets looking to maintain their vehicles in large facilities.