Rental car giant Hertz inked deals with Uber and Carvana designed to expand the renter pool for its expanding fleet of EVs and make it easier to divest vehicles it no longer needs.
Hertz and Uber fashioned an agreement allowing Uber drivers to rent Teslas starting Nov. 1. The rental car company plans to make 50,000 of the 100,000 Teslas it’s planning to purchase next year, available to Uber drivers by 2023.
Drivers in Los Angeles, San Francisco, San Diego and Washington, D.C. will get first crack at the program, which is expected to available nationwide sometime next year. One of the complaints about Uber and ride-hailing services in general is they are a drain on the environment — this should help change that, officials believe.
“Climate change is an urgent global challenge we must all tackle together, and now is the time to drive a green recovery from the pandemic,” said Uber CEO Dara Khosrowshahi in a release. “This combines the power of Tesla, Hertz and Uber to help accelerate the transition to zero-emissions mobility. We look forward to seeing more EVs on the road right away.”
In with the new
Earlier this week, Hertz announced plans to buy 100,000 new Teslas next year to expand its EV rental program. By 2023, half of those could be in use by Tesla drivers across the country. Research shows that when rideshare drivers go electric, they realize 3 to 4 times greater emissions savings than average car owners.
“Today’s partnership with Uber is another major step forward in Hertz becoming an essential component of the modern mobility ecosystem and executing on our commitment to being an environmentally forward company,” said Mark Fields, Hertz interim CEO. “We are creating the new Hertz and charting a dynamic, new course for the future of travel, mobility and the auto industry.”
Uber called the deal “a win-win for drivers who rent.” Through the rental program they can increase their earnings and cut the impact on the environment at the same time. Drivers save on gas and have a chance at higher earnings potential due to Uber’s Green Future Program, which provides incentives — such as $1 more per trip up to $4,000 annually — for drivers to transition from gas-powered vehicles to EVs. They’ll also have access to the Tesla Supercharger network and to Uber’s exclusive EVgo discounts.
According to Uber, Tesla rentals will start out at $334 a week and fall to $299 or lower as the program expands. This includes insurance and maintenance and is the best deal available in the market today for drivers looking to rent a Tesla. For the initial launch period, Hertz requires that drivers have at least a 4.7-star rating and have completed at least 150 trips to be eligible.
Out with the old
Meanwhile, Hertz and Carvana just completed a pilot program where the rental car company used Carvana’s network to sell vehicles no longer needed for its rental fleet.
The deal permits Hertz to use Carvana’s “online transaction technology and logistics network to expand vehicle disposition channels” to sell its vehicles. Previously, the company used auctions, partnerships with dealers and its own Hertz Car Sales locations to move these vehicles on to their next owners.
While it has 68 of its own sales locations, using Carvana will expedite the process of selling the vehicles, making the process more efficient.
“Our new partnership with Carvana will help Hertz provide a tech-enabled and scalable channel through the lifecycle of our fleet,” Fields said. “This is another step toward the new Hertz – combining our brand strength and global fleet expertise with new technology and innovations to chart a dynamic, new course for the future of travel, mobility and the auto industry.”
The deals come just two days after the tie-up with Tesla. Since emerging from bankruptcy in July, the company’s made several big announcements including the addition of former Ford CEO Fields signed on earlier this month.