Industry News: Hertz Makes Deals with Lyft and Uber

[William Maley]

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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

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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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[ccap41]

Hmmmm so they're basically providing Uber and Lyft with discounted and used vehicles. Or is it still a rental for the Uber/Lyft drivers? If that's the case, why would they spend 180/week = 774/month (180*4.3) on a rental when they could buy for way less than that? 

 

If they're selling them their used vehicles, it makes sense to me. If it's a form of rental program, I don't understand it. 

[G. David Felt]

Hmmmm so they're basically providing Uber and Lyft with discounted and used vehicles. Or is it still a rental for the Uber/Lyft drivers? If that's the case, why would they spend 180/week = 774/month (180*4.3) on a rental when they could buy for way less than that? 

 

If they're selling them their used vehicles, it makes sense to me. If it's a form of rental program, I don't understand it. 

I totally agree with you, this is a confusing announcement. Rental makes no sense unless the driver cannot get qualified for a purchase and rental is the only way to go.

[oldshurst442]

Ive got many questions that seems that NOBODY wants to ask or answer...

 

1. Uber drivers...do they actually own their cars?

Because the way I read into things is that most Uber drivers dont even own the cars they drive....

So who is stuck doing the maintenance on them?

The rental agencies?

And when a whole bloody fleet of rental cars get too old, who gets stuck with the bill of replacing these cars?

Because if more and more Lyft and Uber drivers are more and more enticed to rent rather than use their own cars, without any government body being able to enforce usage of good working order vehicles to taxi people around because as we all know....Lyft and Uber is NOT a taxi service....

 

Yeah yeah...I know....we dont want Big Brother telling us when and how to maintain our vehicles...but I as a passenger in a Uber car, because renting will be expensive  as it seems nobody wants to repair and the renter renting the traditional way will fit the bill.....have a right NOT having the wheels fall off or the brakes failing while I use their service and as a USER of the road in MY OWN car ALSO has that right NOT TO BE KILLED by a Uber car failing due to NO SERVICE being made to the Uber car by slamming into me....

 

2. I wonder if all these idiot Uber drivers, the ones that actually use their own cars, ever calculate the REAL costs of wear and tear maintenance, because if they did, I dont think they would be Uber drivers...

 

3. Which begs the question?

Why is Uber allowed to circumvent the laws in place in which they are allowed to say they are NOT a taxi service...

 

All what this does is just pass the buck around for faulty maintenance done on vehicles meant to carry passengers as a business...that is why a Taxi license exists in the first place....it may be a tax grab to some eyes....but there are laws protecting the buying customer with the other drivers sharing the road....

 

Its funny....

People that have old cars are submitted to all kinds of examinations to ensure that their old beater is road worthy, authentic taxi cars too, yet Uber and Lyft cars....NADA....

 

And when a 2-3 year old Lyft/Uber car becomes too dilapidated and  Lyft/Uber change for another car and the process continues....who fits that bill?

Because there will be an over saturation  of cars at this point in time...over time....

So Lyft/Uber wont change cars?

So....a 6 year old Lyft/Uber car aint old by time, so the government wont be able to track the car to take it off the road, but by mileage....the thing will be a shytebox...so who will take care of that?

 

Long rant..I dont know if anybody understood it....I dont care really...

Alls I know is I HATE Uber and Lyft because they have fooled many with their circumventing....

 

NO! NO THEY DID NOT REINVENT HOW TO TAXI PEOPLE AROUND....THEY ARE CIRCUMVENTING THE LAWS!!!

 

WHAT...THE FANCY APPS IS WHAT THEY DID?

A MERE TELEPHONE CALL DOES THE SAME PHOKING THING!!!

ON THE SAME PHOKING DEVICE ONE USES THE APP, ONE COULD USE THE PHOKING PHONE!!!

AND TECHNICALLY,  IN PHONE MODE, ONE COULD SAY THEY ARE USING THE PHONE APP!!!

AND IF ONE OWNS A IPOD, ONE COULD ACTUALLY DOWNLOAD AN ACTUAL PHONE APP TOO!!!

[daves87rs]

Fail.....