Yesterday, Hertz has announced that it reached partnership deals with both Uber and Lyft to provide vehicles to drivers. The deal will see Hertz proving drivers of the ride-sharing startups of vehicles that have been rotated out of their fleet. Drivers will get special rates on these vehicles. Hertz spokesman Bill Masterson says the rate for midsize vehicles will be $180 per week, including mileage and insurance.
Why is Hertz making deals with Lyft and Uber? You only need to go back earlier this year when the company said ride-sharing services was limiting growth. Hertz thinks that if you work with and not against, you might have a shot of succeeding.
“We consider this agreement to be largely complementary to our car-rental business, and it enables us to leverage our fleet and distribution infrastructure to participate in the dramatic growth in the ride sharing, or e-hailing, segment,” Hertz CEO John Tague said in a statement.
It should be noted that Hertz and Lyft have worked together before on a pilot program in Las Vegas and Denver, where drivers were offered a similar deal.
Source: Bloomberg, Hertz
Press Release is on Page 2
Hertz Global Holdings Reaches U.S. Supply Agreement with Lyft for Rental Cars
ESTERO, Fla., June 30, 2016 /PRNewswire/ -- Hertz Global Holdings, Inc. (NYSE: HTZ) has reached an agreement with Lyft to supply its U.S. drivers with cars under specified rental agreements, expanding upon two pilot markets where Hertz and Lyft have partnered together since November 2015. Built on the model used in pilots in Las Vegas and Denver, the agreement provides set rental rates for drivers, who will be serviced from dedicated off-airport Hertz locations that give on-site support. The cars can be used for both Lyft business and personal driving.
In addition to Las Vegas and Denver, Hertz will begin renting cars to Lyft drivers in Los Angeles and San Francisco with more markets expected to follow as part of the national agreement.
"This agreement builds on the work we've been doing with Lyft for the past eight months," said John Tague, president and chief executive officer of Hertz Global Holdings. "Based on that experience, Hertz and Lyft were ready to take the next step, which resulted in this U.S. supply agreement.
"Utilizing cars that are rotating out of our consumer rental fleet creates a model that works for Hertz and for Lyft drivers by providing them with well-maintained, good condition cars. We consider this agreement to be largely complementary to our car rental business, and it enables us to leverage our fleet and distribution infrastructure to participate in the dramatic growth in the ride sharing, or e–hailing, segment."
Hertz Global Holdings Reaches U.S. Supply Agreement with Uber Technologies for Rental Cars
ESTERO, Fla., June 30, 2016 /PRNewswire/ -- Hertz Global Holdings, Inc. (NYSE: HTZ) has reached an agreement with Uber Technologies, Inc. to supply its U.S. partner drivers with cars under specified rental agreements. The agreement provides set rates for partners, who can rent from specified off-airport Hertz locations that give on-site support. The cars can be used for personal driving as well as for Uber business.
Initially, Hertz is supplying partners in the Los Angeles area with other markets expected to follow as part of the national agreement.
"This is a positive agreement for both Hertz and Uber," said John Tague, president and chief executive officer of Hertz Global Holdings. "Utilizing cars that are rotating out of our consumer rental fleet creates a model that works for Hertz and for Uber partners by providing them with well-maintained, good condition cars. We consider this agreement to be largely complementary to our car rental business, and it enables us to leverage our fleet and distribution infrastructure to participate in the dramatic growth in the ride sharing, or e–hailing, segment."
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