Why is Amazon Planning to Sell Cars?

Firstly, Merry Christmas, everyone!

From 2024, Amazon is going to start selling cars in the US. Initially, they'll begin by selling Hyundai cars. It's unclear when they'll have other manufacturers on board.

My first question: why hasn't Amazon already been selling cars? I mean, they try selling everything! A big part of the puzzle may be the regulatory challenges of US car sales. In most US states, manufacturers can't sell directly to customers. Manufacturers must sell to dealers, and only dealers can sell to customers. Why? In short, that's how the space evolved due to the industry's history. In the 1900s, a few car manufacturers had a lot of power over car dealerships, and laws were passed to protect these dealerships. These laws stayed as is. So, how is Amazon getting across this now?

As of now, the Amazon sales process is going to involve local dealers. When you purchase a Hyundai car from Amazon, it will be delivered by your local dealership.

Why push for car sales now, though? One possibility may be Amazon's desire to stay competitive in tech. Cars are rapidly evolving from mechanical products to tech products (think AI digital assistants, self-driving software, maps, car-focused software, etc.). The current deal with Hyundai includes Alexa coming to Hyundai cars shortly.

Will Amazon one day make their own cars? Let's see what happens next.

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