Car retailers certainly haven’t. The company has already built a sizable business selling vehicle parts online, and it could have its sights set on auto services and even car sales down the road.
Like most of Amazon’s plans, this is no small ambition. Cars and their maintenance are a bigger cash sink for the average American household than even groceries, according to the U.S. Census Bureau. While online sales still make up a comparatively small share of the overall auto parts market, they’re growing at a much faster clip than traditional channels with a 16 percent expansion predicted this year, according to market research firm Hedges & Company.
Earlier this year, the New York Post reported that Amazon struck deals with a host of new auto parts vendors to expand its business.
Big chain auto shops may already be feeling the squeeze. Some analysts pointed an accusatory finger at the company earlier this month when companies like AutoZone and O’Reilly reported an abysmal sales quarter, though others blamed the weather.
Nicholas Farhi, an automotive services consultant at strategy firm OC&C, thinks car repair could be Amazon’s next move. The company has already begun to offer various standard installations and fixes through its larger home and business service arm.
by Patrick Kulp
