Hertz Expands Investments in the ‘Modern Mobility Ecosystem’ 

With its recent investment in an all-digital, all-electric car rental service, Hertz Global Holdings is continuing its efforts to position itself at the center of the “modern mobility ecosystem,” company executives said Wednesday (Feb. 23) during the company’s quarterly earnings call.

They also provided updates on other elements of the company’s plan to invest in technology, electrification, shared mobility and a digital-first customer experience, including Hertz’s partnerships with Tesla, Uber and Carvana that were announced in October.

“Bottom line, we have a view of where mobility is headed, and we’re very excited on executing on a strategy to put us firmly in the middle of that,” Hertz Interim CEO Mark Fields said during the call.

Building a Strong Digital Backbone 

The new investment in UFODRIVE, a self-service electric vehicle rental company in Europe, will enable Hertz to deploy that company’s digital rental and fleet management technology in the U.S. and Europe, Hertz said in a Feb. 15 press release.

Customers renting an electric vehicle from UFODRIVE can do everything through an app, including booking the rental, managing the rental, unlocking the car, monitoring the battery, finding charging stations, optimizing their routing and accessing support.

“These efforts will further our capabilities to leverage the best of transportation and logistics management alongside a strong digital backbone,” Fields said during the call.

Catering to Customers’ Interest in Electric Vehicles 

With the Tesla partnership, Hertz now enables retail customers to rent Tesla vehicles in nine major markets across the U.S. Fields said that while this program is in its early stages, retail demand for these electric vehicles has been healthy.

“Retail customers are willing to pay a premium versus the same sizes as another [internal combustion engine] vehicle, and the customer satisfaction levels are very good,” Fields said.

In the Uber partnership, Hertz has dedicated a significant number of its Tesla vehicles to being rented by Uber drivers. This is now available in more than 30 markets in the U.S. Here, too, the demand has been strong.

“We’re seeing strong driver interest, and participating drivers are generating higher earnings,” Fields said.

With the Carvana partnership, Hertz currently has several thousand of its former rental vehicles listed for sale on the Carvana platform, and Fields said they are converting very well into sales.

“Leveraging Carvana’s customer dedication, technology and nationwide first-party network allows for a more efficient direct-to-consumer sales channel, providing Hertz the opportunity to increase its retail-focused disposition channels,” Fields said.

Creating a Digital-First Experience 

During the call, Fields also provided updates on other elements of the company’s digital-first strategy. He said the company expects to have most of its U.S. fleet connected before the end of summer. Data from these cars will enable Hertz to see where the car is, the charge level of its battery and any triggering of its engine service indicator.

The company will also add enhancements to the Hertz mobile app by the end of February and continue to do so throughout the year. These will be designed to deliver a more personalized customer experience, Fields said.

“Hertz is poised to play a central role in the evolution of the modern mobility ecosystem, leading the electric vehicle fleet transition and creating a digital-first experience for business and leisure travelers around the world,” Fields said.