Hertz Signs Deal To Supply Cars To Lyft, Uber

After stating in January that ride-sharing services were crimping the growth of rental car companies, Hertz Global Holdings Inc. seems to have reversed their position. The car rental giant has reached an agreement with Uber and Lyft, the two most prominent ride-hailing services in the U.S., to supply their drivers with vehicles after Hertz circulates them out of their rental fleets.

 

Services like Lyft and Uber have been seen as a threat to the rental car industry since their inception. More and more individuals have been opting for the on-demand convenience of these app-based taxi services rather than going through the process required to drive a rented vehicle.

 

"Largely, Uber is a technology company, so if you think about who can provide fleet management services I think the list is rather short," Northcoast Research analyst John Healy told Bloomberg. Because of this, Healy also believes that companies like Hertz and Avis can make a big splash in this industry and help to create a new market.

 

Uber and Lyft drivers will be able to rent a mid-sized car for around $180 a week. This price also includes all mileage and insurance costs. Lyft began a pilot program with Hertz in Las Vegas and Denver last year, where drivers could rent a compact car for $160 a week. 

 

Hertz rotates some 200,000 vehicles out of its fleet annually.