- Shares of online auto marketplaces including Cars.com, CarMax, Carvana, and competitors tumbled on Thursday after Amazon announced the online retail giant would start selling cars.
- The "new digital shopping experience" where Amazon customers will be able to buy cars online is set to roll out in 2024.
- Hyundai will be the first brand available on the site as part of a partnership between the two brands.
Shares of online car sellers tumbled on Thursday after Amazon (AMZN) announced it will begin selling vehicles to U.S. customers starting in 2024.
Online vehicle marketplaces Cars.com (CARS), CarMax (KMX), Carvana (CVNA), and others took a hit after the e-commerce giant announced it was moving into the industry. Shares of Carmax dropped more than 5.5% while Cars.com fell nearly 3.3%. In the same period, Asbury Automotive Group (ABG) shares declined more than 7.9%, as Sonic Automotive (SAH) fell more than 7.6% and CarGurus (CARG) dipped more than 2.6%.
Amazon reported that Hyundai will be the first brand available for customers to purchase starting in 2024. Customers will be able to buy a new vehicle on their platform and then pick it up or have it delivered by their local dealership at their convenience, Amazon said.
Amazon shares were down around 0.25% on Thursday.