[00-8-23] Amazon.com Poised To Unveil Car Selling Partnership
By Steven Bonisteel, Newsbytes.
SEATTLE, WASHINGTON, U.S.A.,
23 Aug 2000, 10:22 AM CST
****Amazon.com Poised To Unveil Car Selling Partnership 08/23/00 SEATTLE, WASHINGTON, U.S.A., 2000 AUG 23 (NB) -- By Steven Bonisteel, Newsbytes. Amazon.com is about to get some mileage out of an investment it made earlier this year in online car retailer Greenlight.com. Amazon.com said today that it would unveil Thursday a car-buying site backed up by Greenlight.com's network of new- vehicle dealers.
Greenlight.com currently represents dealers in 27 markets, including such larger centers as Atlanta, Boston, Chicago, Detroit, Los Angeles, New York City, San Francisco and Washington, D.C.
Amazon.com said its shoppers will be browsing the Greenlight.com database of new vehicle information when they visit the co-branded destination at amazon.com - allowing side-by- side comparisons of automobile features and prices. Greenlight.com sales are handled by dealers near buyers, who then have access to local after-purchase service and support.
"We're excited to be involved in this emerging industry online," said Jeff Bezos, chief executive officer of Amazon.com. "Greenlight combines the interests of all parties - the customers, the dealers and the manufacturers - producing a simple and fast buying experience for customers."
In January, Amazon.com picked up a 5 percent stake in Greenlight.com for an amount that was not disclosed, In return, Greenlight.com pledged to pay Amazon.com $82.5 million over five years. In addition, Amazon.com will receive warrants to increase its stake in Greenlight.com to as much as 30 percent over the same period.
A similar deal didn't work out so well for online furniture store Living.com, which was supposed to pay Amazon.com $150 million in return for an 18 percent equity stake and premium placement on the high-traffic e-tailer's Web site.
Living.com filed for bankruptcy protection earlier this month.
Still, on Monday, Greenlight.com announced that it had secured another $39 million in funding commitments from a group of investors that included its original backers - Silicon Valley venture capital firm Kleiner, Perkins, Caufield & Byers, and Asbury Automotive Group's investors Ripplewood Holdings and Freeman Spogli & Co. In addition, newcomer investors included Techno-Venture Co., Comdisco Ventures, Pacific Century Cyberworks and Spring Creek Partners.
Said Greenlight.com CEO Joel Manby, "I believe our investors have signaled their agreement that we understand how to build a company with a long-term view of sustainable profits."
Other markets served by Greenlight.com include Buffalo, Greensboro, Jacksonville, Louisville, Memphis, Miami, Nashville, New Orleans, Orlando, Portland, Providence, Raleigh, Rochester, Sacramento, Salt Lake City, San Diego, Seattle, St. Louis and West Palm Beach.
Greenlight.com can be found at: greenlight.com
Reported by Newsbytes.com, newsbytes.com
10:22 CST
Reposted 11:50 CST
(20000823/Press contact: Bill Curry, Amazon.com, 206-266-7180 /WIRES ONLINE, BUSINESS/GREENLIGHT/PHOTO)
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