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Amazon (AMZN) Enters Multi-Year Agreements with Stellantis

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Amazon’s (AMZN - Free Report) robust technology products and solutions continue to drive its customer momentum.

This is evident from latest multi-year agreements signed with Stellantis (STLA - Free Report) to leverage Amazon’s products, technology and Amazon Web Services’ (AWS) capabilities.

We note that the latest agreements reflect a win-win situation for both companies.

Stellantis strives to deepen its push toward turning into a sustainable mobility tech company on the back of these deals. Also, STLA intends to deliver an enhanced in-vehicle experience to its customers.

Amazon will boost its last mile delivery program and accelerate its shift toward a sustainable delivery network with Stellantis’ upcoming electric vehicles.

Further, this latest strategic move by Stellantis added strength to Amazon’s customer base.

More Into Headlines

Amazon collaborated with Stellantis to provide software for STLA SmartCockpit, a software-defined platform designed to deliver personalized in-vehicle experiences.

With the support of Alexa and various AI-powered applications, Stellantis will be able to integrate STLA SmartCockpit with the digital lives of customers, seamlessly.

The platform will help customers manage their vehicles from their Alexa-enabled devices at home or via their Alexa smartphone app.

Apart from STLA SmartCockpit, Stellantis chose AWS as the preferred cloud provider vehicle platform. By leveraging AWS capabilities, STLA intends to migrate its vehicle data pipeline across its brands and geographies to an AWS-backed data mesh for building an advanced cloud-enabled infrastructure for vehicle platforms.

Additionally, Stellantis is gearing up to launch collaborative engineering initiatives and AWS-powered innovation hubs with the help of AWS.

Amazon in Focus

The latest move strengthens Amazon’s strategic relationship with Stellantis, which has been supporting AMZN’s last mile delivery program with several light commercial vehicles like Ram ProMaster, Fiat Ducato and Peugeot and Citroen since 2018.

The move will make Amazon the first customer of Stellantis’ new Ram ProMaster Battery Electric Vehicle with strong last mile delivery features. The vehicle will be launched in 2023.

These vehicles will serve on the delivery routes of Amazon across the United States.

This remains a major positive as the last mile delivery program holds much significance for Amazon. It is continuously helping the e-commerce giant gain momentum among its online customers. This is very crucial for AMZN’s online retail business.

Further, Stellantis’ selection of AWS highlights the reliability and efficiency of Amazon’s cloud-computing portfolio. AWS continues to witness growth in its clientele owing to its focus on enhancing service offerings.

Zacks Rank & Stocks to Consider

Currently, Amazon carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the retail-wholesale sector are Target (TGT - Free Report) and Costco Wholesale (COST - Free Report) , which carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Target has gained 20.2% over a year. The long-term earnings growth rate for the stock is currently projected at 14.4%.

Costco has gained 49.1% over a year. The long-term earnings growth rate for the stock is currently projected at 8.8%.