E-commerce vehicle acquisitions face hurdles due to existing laws

Published: 6 February 2024

During the 2023 Los Angeles International Auto Show, Hyundai and Amazon revealed plans to enable vehicle purchases on their e-commerce platform by 2024. However, this option is not currently available. Since 2018, it has been possible to browse a digital showroom of Hyundai vehicles, but not to complete the purchase. Even when the company introduces the capability to buy vehicles online, widespread availability is unlikely. In the United States, states generally require legacy automakers to sell their cars through franchised dealers, writes Vivek Astvansh in The Conversation. To adhere to these franchise dealership laws, Amazon cannot simply list vehicles for sale like its other products. Instead, it must collaborate with dealerships, which may be reluctant to partner with the e-commerce giant due to concerns about missed opportunities for relationship-building and upselling to customers.

Back to top