Amazon.com, the world’s largest online retailer, announced yesterday that it has entered into an alliance with web-based car dealership, Greenlight.com to launch a joint internet car sales venture.
Amazon users will be able to hotlink directly from its home page to the ‘new cars’ section of Greenlight’s website. According to Amazon, the service will be available in twenty-seven markets – equivalent to 70% of the online population.
Under a partnership deal agreed last January, Greenlight ceded a 5% stake to Amazon, enabling it to join Amazon’s Commerce Network, a series of partnerships with other online vendors.
However, membership of the Network appears to have an effect not unlike Tutenkamun’s curse. One partner, online furniture seller Living.com, collapsed this week after running out of funds; while another, Kozmo.com, a grocery delivery group, handed redundancy notices to 275 staff and cancelled its initial public offering.
Amazon, itself yet to make a profit, admitted last month that it would be renegotiating with a number of its partners – a haggling match that is expected to result in a reduction of payments made to Amazon.
Wall Street, however, appeared unfazed by the Greenlight deal and Amazon shares closed last night up by more than 6% at $38-13/16.
News source: Financial Times