# Hertz Links Up With Uber to Offer 50,000 Tesla Rentals



## Disgusted Driver (Jan 9, 2015)

Looks like Hertz is looking for a new way to lose money. They just agreed to purchase 100K vehicles from Tesla by the end of next year, lets turn around and lease 1/2 of them to Uber drivers!!!

By 
Nora Naughton
and Michael Dabaie
Updated Oct. 27, 2021 11:32 am ET


Hertz Global Holdings Inc. HTZZ -0.55% said Wednesday it is linking up with Uber Technologies Inc. UBER -2.88% to make 50,000 Teslas available in Uber’s ride-sharing network by 2023, the latest in the rental-car firm’s efforts to build momentum postbankruptcy.
The deal comes days after Hertz, which collapsed into bankruptcy at the start of the Covid-19 pandemic last year, said it is making a significant investment in an EV rental fleet, including an initial order of 100,000 Teslas by the end of 2022 and new EV-charging infrastructure across the globe. The company exited Chapter 11 in June and has a planned stock listing coming later this year.
The Teslas it intends to add to the Uber network will come from the 100,000 vehicle order revealed earlier this week and future orders as the program grows.
The latest deals are part of a broader strategy by the postbankruptcy Hertz to modernize its operations and fleets, leveraging new tech to improve logistics and give customers more options, particularly on plug-in electric models, said Mark Fields, Hertz’s interim chief executive.


“One of the biggest benefits of a restructuring like ours is it gives us a fresh perspective,” Mr. Fields said in an interview. “It allows us to take the approach of instead of saying ‘why?’—‘why not?’”
Mr. Fields, a veteran auto industry executive and former Ford Motor Co. CEO, was named to his latest post earlier this month.
The deal between Hertz and Tesla led to a big stock-market rally for the electric-car maker this week. Tesla’s stock, which more than doubled this past year, shot up to $1,024.86 a share Monday, pushing the company’s value north of $1 trillion for the first time.
The deal also aided Hertz’s shares, which have been traded over the counter since the company was delisted in the summer of 2020. Hertz’s shares rose roughly 10% to $27.17 Monday.
The rental-car firm plans to list its shares on the Nasdaq in the fourth quarter of this year, under its previous ticker symbol, HTZ. The listing will mark a comeback for Hertz, whose bookings collapsed as Covid-19 began to rapidly spread in the U.S. in the spring of 2020. At the time, the 103-year-old company was laden with debt after years of aggressive borrowing, leading it to file for bankruptcy in May that year.


Since then, the travel industry has rebounded and demand for rental cars has surged as more Americans hit the road, looking for an alternative to air travel. Investors have piled into Hertz, too, trading up the shares in the over-the-counter market.
Rental-car bookings have been so strong that rates have climbed, and many customers have had trouble finding vehicles.
Hertz, along with rivals Avis Budget Group and Enterprise Holdings Inc., are also trying to rebuild their vehicle fleets after cutting back in the early days of the health crisis. But a wider shortage of new cars and trucks—caused by supply-chain disruptions and car companies having to idle auto plants—has become a challenge, resulting in firms having to turn to the used-car market to restock rental lots.
The company emerged from bankruptcy with more than $5.9 billion in new equity capital, a large portion of which was raised by new owners Knighthead Capital Management LLC and Certares Management LLC.
Hertz has been supplying vehicles to drivers at Uber and rival Lyft Inc. since 2016.

The relationship with Tesla isn’t exclusive, and Hertz eventually plans to buy electric vehicles from other companies like Ford and General Motors Co. , according to Mr. Fields.
The new Hertz is looking to redefine its role in the transportation world, going beyond the traditional buyer-seller relationship between rental-car firms and car companies.
Mr. Fields said he sees opportunity in the company becoming more like a fleet-management provider, where Hertz can help businesses manage vehicle offerings to customers.
“Our approach going forward is going to be different,” Mr. Fields said. “We want to be asking: ‘How can we help you achieve your objectives?’”
Hertz and Uber said Wednesday they are in a new exclusive partnership to make as many as 50,000 Teslas available by 2023 for drivers to rent when using the Uber network.
Starting Nov. 1, Uber drivers can rent Teslas from Hertz in Los Angeles, San Francisco, San Diego, and Washington, D.C., rather than use their personal vehicles, with a nationwide expansion planned in the coming weeks.
The companies said the deal offers consumers access to the Tesla Supercharger network and Uber’s EVgo discounts, as well as other financial benefits through Uber’s Green Future program.
—Michael Dabaie contributed to this article.
*Write to *Nora Naughton at [email protected]


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## _Tron_ (Feb 9, 2020)

Thank you for posting. This is an interesting article. I applaud Hertz for trying to make some lemonade at of the pandemic fallout and years of poor decisions. If executed properly (the devil is always in the details) this could work in my view. Meaning, in terms of Hertz taking a leap in to the future rather than trying to recreate the model they had been using.

Being an EV advocate I am of course delighted to see this. It is of course a broad and deepening trend to go electric. As to whether Hertz can make renting Teslas to rS drivers, who knows. But the very fact that Tesla is making this deal is significant because Tesla is planning its own ride share network. This tells me that plan has been backburnered for the moment.


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## Disgusted Driver (Jan 9, 2015)

_Tron_ said:


> Thank you for posting. This is an interesting article. I applaud Hertz for trying to make some lemonade at of the pandemic fallout and years of poor decisions. If executed properly (the devil is always in the details) this could work in my view. Meaning, in terms of Hertz taking a leap in to the future rather than trying to recreate the model they had been using.
> 
> Being an EV advocate I am of course delighted to see this. It is of course a broad and deepening trend to go electric. As to whether Hertz can make renting Teslas to rS drivers, who knows. But the very fact that Tesla is making this deal is significant because Tesla is planning its own ride share network. This tells me that plan has been backburnered for the moment.


I'm with you, an EV advocate as well. I think it's fantastic that hertz agreed to buy 100k tesla in the next 2 years. It's great for tesla because they will see what if any issues they will have going mainstream (and there are a few like opening doors) and if hertz can do a good job of making them simple to rent, there might be some serious cost savings as well. I don't think they are a good fit for the ride share leasing market though for a few reasons. They are expensive. You kind of need to go with the long range (350 miles claimed) which will cost them 45k even with a fleet discount. You will save on maintenence but collision damage is frighteningly expensive. From the driver point of view, if you abide the car and always charge up to 100% then you may have an effective range of 300 miles in good weather conditions but always charging to 100% is not recommended and will shorten battery life as will approaching 0% so realistically you have about 250 miles without anxiety, a bit of a limiting factor unless uber's software was smart enough to check the range of the car before assigning you a ping. 

I think lessons will be learned which is great, also tesla's ride share idea is based on full self drive so it will be several years befits it's even possible.


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## _Tron_ (Feb 9, 2020)

Well, as I've read it, Tesla (Elon) wants to start the program before FSD is approved and let human drivers pilot the cars. But he changes his mind often.

A few years ago Tesla instituted a policy of commercially used Tesla's being prohibited from super charging (people were getting letters). If that policy is still in effect it will have to be repealed for this to go. I hope so because I still have a Cybertruck on order to use for RS. lol.


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## goneubering (Aug 17, 2017)

_Tron_ said:


> Thank you for posting. This is an interesting article. I applaud Hertz for trying to make some lemonade at of the pandemic fallout and years of poor decisions. If executed properly (the devil is always in the details) this could work in my view. Meaning, in terms of Hertz taking a leap in to the future rather than trying to recreate the model they had been using.
> 
> Being an EV advocate I am of course delighted to see this. It is of course a broad and deepening trend to go electric. As to whether Hertz can make renting Teslas to rS drivers, who knows. But the very fact that Tesla is making this deal is significant because Tesla is planning its own ride share network. This tells me that plan has been backburnered for the moment.


Partnering with Uber is the kiss of death.


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## _Tron_ (Feb 9, 2020)

Here's another article on the deal with pricing and start date of program included.









Tesla for $299 a week, insured: Uber drivers eligible to rent through Hertz


The program includes 50,000 Teslas could be expanded up to 150,000 Tesla vehicles, and will help appease requirements from CARB and EV targets at the ride hailing company.




www.greencarreports.com





One irking note in the agreement: "The Teslas are also covered by Uber’s incentive program chipping in $1 more per trip, up to $4,000 annually, so that drivers might switch to EVs."

WHICH HAVE BEEN DISCONTINED FOR CALIFORNIA DRIVERS WHO DRIVE EVs.


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## kingcorey321 (May 20, 2018)

A few years . Watch tesla stock fall. Nothing tests a car like a uber driver . 
It would fail me on the first day. I used to drive only airport for about a few years . Then all city . I used to easily drive 400 miles daily . Can that tesla do that for me ? My gas car gets 40 or so mpg driving 77mph . What will that tesla get per charge driving 77mph for 7 or 8 hours ? It wont be 350 or 300 lol. Total fail. And pax that slam doors like ((())))(( ! That door will hold up ?
That fat ass passenger that has to waddle in. Nope .


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## _Tron_ (Feb 9, 2020)

kingcorey321 said:


> A few years . Watch tesla stock fall. Nothing tests a car like a uber driver .
> It would fail me on the first day. I used to drive only airport for about a few years . Then all city . I used to easily drive 400 miles daily . Can that tesla do that for me ? My gas car gets 40 or so mpg driving 77mph . What will that tesla get per charge driving 77mph for 7 or 8 hours ? It wont be 350 or 300 lol. Total fail. And pax that slam doors like ((())))(( ! That door will hold up ?
> That fat ass passenger that has to waddle in. Nope .


Looks like its happy hour for corey again.

You're right. So, no Tesla for you! Come back, next lifetime.


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## Disgusted Driver (Jan 9, 2015)

kingcorey321 said:


> A few years . Watch tesla stock fall. Nothing tests a car like a uber driver .
> It would fail me on the first day. I used to drive only airport for about a few years . Then all city . I used to easily drive 400 miles daily . Can that tesla do that for me ? My gas car gets 40 or so mpg driving 77mph . What will that tesla get per charge driving 77mph for 7 or 8 hours ? It wont be 350 or 300 lol. Total fail. And pax that slam doors like ((())))(( ! That door will hold up ?
> That fat ass passenger that has to waddle in. Nope .


Can't say about tesla stock prices. I just sold at 1030 because I think they were overvalued. But that's irrelevant. Tesla wins. They sell 100k cars to hertz, get their hands on a ton more data to train their cars and improve them and make money if drivers use superchargers. I think they will lift the commercial ban as they install lots more chargers. If hertz didn't negotiate that they are in a world of pain because most drivers will not have good charging options. 

As far as mileage goes, running a 3lr from 90% to 20% would be roughly 53 KwH of power. Worst case you get 3 miles per Kwh driving over 70 with heat blasting. So you might only get 160 miles in the winter before you need a 20 minute charge to get you back up to 80% . It's doable, needs a little work and refinement, the cost of operation per mile is fantastic.


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## tohunt4me (Nov 23, 2015)

Disgusted Driver said:


> Looks like Hertz is looking for a new way to lose money. They just agreed to purchase 100K vehicles from Tesla by the end of next year, lets turn around and lease 1/2 of them to Uber drivers!!!
> 
> By
> Nora Naughton
> ...


Can we SLEEP while they drive themselves ???


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## tohunt4me (Nov 23, 2015)

goneubering said:


> Partnering with Uber is the kiss of death.


We know about being Ubers " partner". . .

" NO NEED TO TIP " !


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## Classified (Feb 8, 2018)

So Uber makes money off us, now they want Hertz to make money off us 😂 

I would love to drive or own a telsa. And I’ve done the numbers to own one, and it’s not financially viable.

My current hybrid costs me, $150nzd per week including petrol, ($107usd). Maintenance tyres etc is cheap, and I’m prepared to write it off end of its Term. Well trade It in.

Unless you have access to cheap/free power, would reduce costs. Which I don’t,


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## ubercrashdummy (Mar 5, 2015)

Obviously this could be a diabolical plan to get drivers to subsidize the final R&D needed to make themselves redundant.

However, if successful Tesla would have all the tech to dominate the industry and Hertz would have the fleet. Why would they just not cut Uber out as they would be just as redundant as the drivers?

Eventually Tesla would also be able to cut Hertz out. Perhaps not, you do need someone to clean, charge and service the fleet.

Instead, we could just have a unified Tesla app experience where we could buy, rent or just order a ride.


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## kdyrpr (Apr 23, 2016)

So according to this that I copied off of a website, not so sure it's cheaper than gas. The assumption is if you are renting this vehicle you are going to have to drive full time minimum 40 hours a week which obviously tacks the mileage on requiring you to charge the vehicle daily. 

_Tesla Home Charging Cost Example:_

Let’s say you live in California and your average cost per kWh is $0.20. Then filling up a Model 3 or Model Y Long Range with a 75 kWh battery pack from 10 kWh to 70 kWh (you usually don’t fill up to 100% as that degrades the battery more quickly), would cost *$12.00 *(60 kWh x $0.20/kWh)


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## Disgusted Driver (Jan 9, 2015)

ubercrashdummy said:


> Obviously this could be a diabolical plan to get drivers to subsidize the final R&D needed to make themselves redundant.
> 
> However, if successful Tesla would have all the tech to dominate the industry and Hertz would have the fleet. Why would they just not cut Uber out as they would be just as redundant as the drivers?
> 
> ...


Good points. No doubt, we haven't seen the last of the shakeup. I don't think uber will ultimately be the dominant player in self driving "taxi" service. It's a completely different business model so what are the odds that they will be successful in a completely different business model, capital intensive fleet management. Hertz has more experience in this and tesla could easily write the software. 



kdyrpr said:


> So according to this that I copied off of a website, not so sure it's cheaper than gas. The assumption is if you are renting this vehicle you are going to have to drive full time minimum 40 hours a week which obviously tacks the mileage on requiring you to charge the vehicle daily.
> 
> _Tesla Home Charging Cost Example:_
> 
> Let’s say you live in California and your average cost per kWh is $0.20. Then filling up a Model 3 or Model Y Long Range with a 75 kWh battery pack from 10 kWh to 70 kWh (you usually don’t fill up to 100% as that degrades the battery more quickly), would cost *$12.00 *(60 kWh x $0.20/kWh)


I think your assumption is correct, anyone leasing for rideshare is going to have to drive full time to make their lease payment and have something left over. What are they going to do about charging overnight? During a shift? Supercharger stations are more expensive and more time consuming than channing at home overnight but who's going to spend a grand to set up home Charging? 

Assuming 20 cents a Kwh in CA, if climate control not needed you should get 4 miles to the KwH so you are looking at 4 to 3 miles per Kwh (if you need ac) or 5 to 8 cents per mile. Compare that to 40 mpg with gas at 5 bucks or 12 cents a mile. If you are using a supercharger it's probably even.


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## tohunt4me (Nov 23, 2015)

kdyrpr said:


> So according to this that I copied off of a website, not so sure it's cheaper than gas. The assumption is if you are renting this vehicle you are going to have to drive full time minimum 40 hours a week which obviously tacks the mileage on requiring you to charge the vehicle daily.
> 
> _Tesla Home Charging Cost Example:_
> 
> Let’s say you live in California and your average cost per kWh is $0.20. Then filling up a Model 3 or Model Y Long Range with a 75 kWh battery pack from 10 kWh to 70 kWh (you usually don’t fill up to 100% as that degrades the battery more quickly), would cost *$12.00 *(60 kWh x $0.20/kWh)


Before the Rolling Power Outages begin.


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## _Tron_ (Feb 9, 2020)

Two words: Solar. panels.


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## goneubering (Aug 17, 2017)

So is anyone here driving a Tesla????


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## tohunt4me (Nov 23, 2015)

goneubering said:


> So is anyone here driving a Tesla????


Nope























If you Do own a Tesla . . .NEVER PARK IT NEAR YOUR HOUSE !


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## tohunt4me (Nov 23, 2015)

Tesla : " Unsafe at Any Speed "!

Even parked.


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## Tnasty (Mar 23, 2016)

Knowing uber, they will favor the teslas and you will get the packy runs!


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## ANT 7 (Oct 14, 2018)




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## Buckiemohawk (Jun 23, 2015)

They are going to lose more money


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## Stevie The magic Unicorn (Apr 3, 2018)

Let's hope it drives both of them closer to bankruptcy.. neither company deserves to continue existing.


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## p7wang (12 mo ago)

15,000 Tesla vehicles are already in the hands of Uber drivers through Hertz deal


Uber announced that 15,000 Tesla vehicles are already in the hands of its drivers in more than 30 US cities...




electrek.co


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## Tnasty (Mar 23, 2016)

p7wang said:


> 15,000 Tesla vehicles are already in the hands of Uber drivers through Hertz deal
> 
> 
> Uber announced that 15,000 Tesla vehicles are already in the hands of its drivers in more than 30 US cities...
> ...


You can be sure uber will feed them, and you will get the walmart run!


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