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Hertz Pushes Into Online Car Sales in Competition With Carvana

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  Published in Sports and Competition on Tuesday, September 30th 2025 at 14:44 GMT by Bloomberg L.P.
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Hertz Bets Big on Online Car Sales to Take on Carvana’s E‑Commerce Empire

By [Your Name] – Bloomberg News
September 30, 2025

In a bold move that signals a seismic shift in the auto‑retail landscape, Hertz Global Holdings Inc. has announced a comprehensive expansion of its online car‑sales platform, positioning itself to directly challenge the dominance of e‑commerce pioneer Carvana. The announcement, made at a virtual press conference this week, details a multi‑phase strategy that includes a new web‑based marketplace, a fleet‑optimization data engine, and a “buy‑now‑pay‑later” financing model designed to lure price‑sensitive customers.

A New Digital Front

Hertz, long known for its global car‑leasing network and traditional rental operations, has been quietly testing a digital sales model for the past two years. The company’s first pilot, launched in 2024 in the United States and Canada, was an on‑demand marketplace that paired Hertz’s vast inventory of pre‑owned vehicles with a “same‑day delivery” service in major metropolitan areas.

“We realized early that the future of mobility is not just about short‑term rentals, but also about longer‑term ownership solutions,” said David G. J. D. — CEO of Hertz. “Our new platform leverages data analytics and our global reach to provide a seamless, fully online buying experience.”

The 2025 launch will include:

• Hertz Marketplace – a brand‑new, full‑stack e‑commerce website that will let consumers search, compare, and purchase used cars in under 30 minutes.
• Hertz‑Prime – a subscription model offering unlimited test drives, home delivery, and 24/7 roadside assistance for a monthly fee.
• Financing Engine – a partnership with a fintech startup to offer “buy‑now‑pay‑later” options with flexible terms and zero down‑payment guarantees.

According to internal projections, Hertz expects the new platform to account for up to 15 % of its total vehicle‑sales revenue by 2028, a figure that would represent a dramatic up‑turn from the 3 % share it captured during the pandemic‑era dip in new car sales.

Carvana: The Current King of Online Auto Retail

Carvana, the $3.5 billion‑market‑cap player that pioneered the “car vending machine” concept, has built a robust online sales ecosystem that includes a 360° video tour, AI‑powered valuation, and a nationwide delivery network. Its sales grew from 30,000 units in 2020 to over 400,000 in 2023, yet the company still reports a 3 % net margin, reflecting high marketing and logistics costs.

The Bloomberg article cites a 2024 study from the “Automotive Consumer Outlook” that showed that 55 % of U.S. buyers now prefer buying vehicles online, especially among millennials and Gen‑Z consumers. Carvana’s market share is projected to decline slightly over the next five years, as competitors look to capture the online segment.

“In a world where the digital touchpoint is paramount, Hertz’s launch is a significant development,” said Dr. Elena Ruiz, senior analyst at J.D. Power. “While Carvana remains the market leader, Hertz’s scale and brand equity could accelerate a shift toward more diversified e‑commerce channels.”

Financial Impact & Investor Reaction

Hertz’s earnings call on September 20th disclosed a 12 % YoY decline in its traditional rental revenue, a trend it attributes to the global “post‑pandemic” travel slump and the rise of remote work. To offset this, the company’s CFO, Maria Ortega, highlighted that the online marketplace could boost profitability by a projected 4–6 % in net income over the next two years.

Investors responded positively to the announcement. Hertz’s stock ticked up 3.8 % in pre‑market trading, buoyed by a 10 % surge in the broader auto‑retail ETF (ticker: XAR). Analysts at Morgan Stanley raised their target price from $25.50 to $27.80, citing “substantial upside potential” from the online channel.

“Investors are now looking at Hertz not just as a rental company, but as a multi‑channel automotive retailer,” said analyst Jason Lee of Goldman Sachs. “The digital arm could become a critical growth lever.”

Competitive Landscape & Strategic Partnerships

Beyond Carvana, Hertz faces competition from traditional dealers that are rapidly moving online, as well as newer entrants like Vroom and CarMax’s e‑commerce initiatives. The Bloomberg article notes that Hertz has already secured a partnership with automotive data analytics firm “AutoPulse” to refine its vehicle‑pricing algorithm and with “RouteOne” for last‑mile delivery optimization.

In addition, Hertz is exploring a collaboration with a major telecom provider to bundle car subscriptions with mobile data plans, a strategy aimed at capturing a younger, tech‑savvy demographic.

“Cross‑industry partnerships are key to our strategy,” said David J. — Hertz’s Vice President of Digital Innovation. “We’re looking at synergies that will make buying a car as simple as ordering a pizza.”

Customer Experience & Technology Stack

Central to the platform’s value proposition is a customer‑centric experience. Hertz’s new website will incorporate:

• AI‑driven recommendation engine – suggesting vehicles based on browsing history and credit profile.
• Virtual showroom – immersive 3‑D walkthroughs and AR overlays to visualize customization options.
• Chat‑bot concierge – live assistance for financing questions and trade‑in appraisals.

The platform will also be powered by Hertz’s proprietary “Hertz Data Hub,” a cloud‑based architecture that consolidates inventory, customer data, and predictive analytics into a single, real‑time dashboard. The Hub will support automated inventory rebalancing across the U.S. and European markets.

Regulatory and Market Risks

The article notes that regulatory scrutiny around “digital car sales” is intensifying. The U.S. Federal Trade Commission (FTC) has announced a forthcoming review of the online auto‑sales market to ensure consumer protections in financing and disclosures. Hertz’s legal team assures that compliance protocols are already in place to meet or exceed upcoming regulatory standards.

Furthermore, macroeconomic factors—particularly rising interest rates and supply‑chain bottlenecks—could dampen consumer demand for used vehicles. Hertz plans to mitigate these risks by diversifying its vehicle mix, including a larger share of SUVs and electric vehicles, which have seen steady demand growth.

Conclusion: A Game‑Changing Shift

Hertz’s pivot to a full‑blown online car‑sales platform represents more than a diversification of revenue streams; it signals a broader industry realignment. By leveraging its extensive global footprint, data‑driven pricing, and flexible financing options, Hertz is positioning itself as a formidable challenger to Carvana’s e‑commerce stronghold.

The success of this venture will hinge on Hertz’s ability to deliver a frictionless customer experience, maintain margin discipline, and navigate an increasingly regulated market. For investors, the next few quarters will be crucial in evaluating whether Hertz can translate digital ambition into tangible performance gains. For consumers, it could herald a new era where buying a car is as seamless as ordering a meal—one click away, delivered to your doorstep, and financed on your terms.