On Thursday, Amazon introduced Amazon Vehicles, an online platform focused on the automotive industry that allows users to look at images, videos and customer reviews of cars. It includes various research, review and shopping capabilities.
"Our goal is to support customers during one of the most important, research-intensive purchases in their lives by helping them make informed decisions every step of the way," said Adam Goetsch, director of automotive at Amazon.com, in a statement.
The auto parts segment has always been an area of strength for eBay (EBAY) - Get eBay Inc. Report and it's not surprising that Amazon is expanding its footprint in the category, Maxim Group analyst Tom Forte said via phone.
He noted that Amazon is working to leverage its review system which has been one of Amazon's strengths.
Meanwhile, what Costco (COST) - Get Costco Wholesale Corporation Report has done to increase its membership basehas been a good model to gauge what Amazon may look to do to grow the number of users that can eventually turn into Prime members.
"I think it's about increasing the value of membership" rather than tapping into the automotive end-market, Forte said of Amazon Vehicles.
Moving forward, Amazon is looking to extend its travel- and insurance-related offerings. The e-commerce company launched travel deals services called Amazon Destinations in 2015 and started offering its own brand protection insurance dubbed Amazon Protect in the U.K. earlier this year.
Shares of Amazon are up about 0.7% Friday afternoon to $763.34. Amazon is up about 13% year-to-date.
Amazon has enjoyed a busy year as it has aggressively identified new growth areas and injected investments in them. For instance, it has been working to build out its own transportation network, most recently showcasing its first-ever air cargo plane called Amazon One earlier this month. It has also hinted at getting into banking by teaming up with Wells Fargo (WFC) - Get Wells Fargo & Company Report to offer a loan discount to Amazon Prime Students.
This investment strategy underscores Bezos' playbook of finding creative ways to boost its Prime Membership's offerings by tapping into lucrative end-markets.
Last month, Amazon delivered a solid quarter by breezing through Wall Street estimates. It reported revenue of $30.4 billion and earnings per share of $1.78 vs. analysts' estimate of $29.55 billion of revenue and $1.11 of EPS.
Cloud computing business Amazon Web Services has emerged as the gem of the company. Despite its large scale, it still delivered 58% revenue growth to $2.9 billion during the latest quarter, and leads the pack in cloud against Microsoft's (MSFT) - Get Microsoft Corporation (MSFT) Report Azure and Alphabet's (GOOGL) - Get Alphabet Inc. Class A Report Google Cloud Platform.