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After a fantastic deal, Hertz customers, particularly Uber drivers with 4.7-star ratings will now be able to rent Tesla Model 3 sedans at locations in Los Angeles, San Francisco, San Diego, and Washington, D.C.
Mark Fields, Hertz’s interim CEO released a statement, “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,”
It was also confirmed that Hertz will initially add 100,000 Teslas to its United States and European fleet that it will make up to half of the battery-electric vehicles available to Uber drivers.
On the other hand, Hertz has also signed a deal with Carvana, a used car retailer with vehicles coming out of its rental fleet. Carvana has been struggling to find inventory in the face of a severe shortage of both new and previously owned vehicles which makes Hertz their top supplier as of the moment.
Fields added on a statement, “Our new partnership with Carvana will help Hertz provide a tech-enabled and scalable channel through the lifecycle of our fleet.”
In the following month, Hertz locations in Los Angeles, San Francisco, San Diego, and Washington, D.C. will be able to cater to customers renting Tesla Model 3 sedans which they plan to expand the rental operations nationwide by the end of the year. Motorists will be able to charge up at Hertz locations and Tesla’s network of Supercharger stations.
The best thing about this deal is not only that customers will now be able to enjoy longer-ranged Tesla products but also addresses another key obstacle which is the cost of having to charge up as frequently as earlier battery-electric vehicles.
Uber’s senior vice president of mobility and business operations, Andrew Macdonald said in a statement, “It’s important to note that owning an electric vehicle is still too often more expensive than a traditional gas-powered vehicle, and this partnership is a step forward to advance electrification on the Uber platform.”
Initially, drivers will be able to rent Model 3s for $334 a week before taxes and fees but Hertz has already planned to lower that to $299 but Uber drivers will need to have a minimum of 4.7-star ratings and must have logged at least 150 trips for the ride-sharing service.
Tesla has a valuation already hit $1 trillion on Monday which makes this the biggest deal between the tie-ups between Hertz and Uber.
It was also reported that Tesla is preparing to double its production capacity by opening factories in Texas and Germany after it already operates assembly plants in California and China.
At the time Hertz completed a 13-month run through bankruptcy in June, but after it dumped a large share of its daily rental fleet, the company is now rebuilding its network but plans to use Carvana as a more effective way to dispose of used models going forward.
It is the first time a daily rental company has directly partnered with a retail chain specifically focused on used vehicles.
Source: NBC News
