LONDON: June 14, 2017. Amazon is hiring automotive experts as a prelude to selling cars in the UK according to eCommerce delivery company Parcel Hero.
David Jinks, Parcel Hero head of Consumer Research, cites a report from German trade magazine Automobilwoche that says the company is planning to move into the European car business.
According to the magazine, industry specialist Christoph Moeller has been put in charge of Amazon's European car business and the company is already recruiting. He added the company plans to run the business out of Luxembourg and is looking at Britain as its probable pilot market.
"Amazon is looking at every branch of retail so there is small wonder it is now looking at car sales," said Jinks. "It is already making loans to its marketplace traders so it may offer attractive loans on new cars to its Prime Members."
Jinks agreed with Moeller that the UK would be the most likely pilot market for Amazon because it launches many of its ideas in Britain before expanding internationally.
"Amazon trialed selling small Fiats in Italy last year with some success. But even the dinky Fiat 500 can't be left under your doormat or in your porch. Amazon would likely have to work with an established car distributor to deliver your new car; introducing an entirely new supply chain."
The prospective new Amazon business model is acknowledged by UPS in a new study on buying habits that says asset-light eMarketplaces "are upending industrial distributors' inventory-heavy model more rapidly than previously thought".
"The biggest shift comes from Millennials who grew up in a digital era and are bringing their tech-savvy and nontraditional purchasing habits – for example, bypassing the middle man and working directly with the manufacturer – with them into the workplace," observed Matthew Guffey, vice president of UPS segment marketing.
"The impact on the future of industrial products purchasing may be among the most profound of any modern generation of buyers and provide a glimpse of the future," he added.
Depending on which end of the car market Amazon decides to test, Emirates SkyCargo already offers a specialized transportation solution - Emirates SkyWheels - to transport high value and premium automobiles.
The latest example is the delivery of the first car designed and built entirely in the U.A.E. to Lyon where it will be exhibited during the Le Mans 24 Hours endurance race.
Produced by Jannarelly Automotive with Equation Composites, the "retro-futuristic" car is valued between US$70,000 and US$90,000 depending on customization - not an unrealistic price tag for some Amazon Prime UK customers with a mid-life urge.
