Car rental firm Hertz and online car retailer Carvana are partnering on an initiative that will allow Hertz to use Carvana’s online transaction technology and logistics network to increase its sales.
Carvana’s technology and logistics network gives Hertz the chance to more easily sell directly to consumers from its rental fleet, in addition to auctions, direct-to-dealer offerings and 68 Hertz Car Sales outposts across the U.S.
“Our new partnership with Carvana will help Hertz provide a tech-enabled and scalable channel through the lifecycle of our fleet,” said Mark Fields, Hertz interim CEO, in the joint announcement.
“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,” he said.
Carvana has a fleet of more than 45,000 vehicles for sale and offers financing, trade-in or and sales of customers’ current vehicles to Carvana. Users can also sign contracts and schedule as-soon-as-next-day delivery or pickup at one of Carvana’s automated Car Vending Machines.
“Carvana’s technology and infrastructure enable this partnership to bring online car buying experiences to more customers,” said Ernie Garcia, Carvana Founder and CEO, in the joint announcement. “Our nationwide first-party logistics network allows Hertz to expand its retail reach beyond its physical stores and into over 300 markets across the country.”
Related: Carvana in Government Crosshairs After Increased Complaints
Carvana customers have filed dozens of complaints with local officials and hundreds more with the Better Business Bureau related to wrong paperwork, delays getting their vehicle’s documentation and other issues with the nine-year-old online auto retailer, according to The Wall Street Journal.
The Better Business Bureau fielded 899 complaints from Carvana shoppers this year through the end of September, more than double the 411 issues reported to the BBB with CarMax. Carvana customers have also filed dozens of complaints with officials in Ohio, Texas, Georgia and North Carolina. The company’s operations are suspended in several states.
Also read: Car Rental Demand Prompts Hertz To Try Again For IPO
Meanwhile, Hertz exited bankruptcy in June as part of a $6 billion deal that gave 42 percent ownership to Knighthead Capital Management, Certares Opportunities and Apollo Capital Management and has filed new paperwork with the Securities and Exchange Commission (SEC) for a $100 million initial public offering (IPO) on Nasdaq, according to multiple reports.
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