Hertz Reaches Deals to Rent to Uber, Lyft
June 30 2016 - 10:00AM
Dow Jones News
Hertz Global Holdings Inc. said it reached new deals to rent
cars to drivers for Uber Technologies Inc. and its rival Lyft,
which could help the car rental company shore up its business as
the ride-hailing services race to bulk up on drivers.
Shares of Hertz, which have fallen 24% so far this year through
Wednesday's close, climbed 5.9% in premarket trading.
Hertz, in separate news releases Thursday, said its arrangement
with Uber would start in Los Angeles before being expanded to other
areas. With regard to Lyft, which has had a similar partnership
with Hertz in Las Vegas and Denver since late last year, Hertz said
it also would rent cars to drivers in L.A. and San Francisco.
The move comes as Lyft has tried to catch up with Uber in dozens
of U.S. markets. The companies appear to be betting they can expand
their ranks by trying to appeal to people who don't have a vehicle
but might want to make extra cash driving a rental car.
"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," said
John Tague, Hertz Global's chief executive. In a separate news
release regarding Uber, Mr. Tague said the exact same quote except
replaced "Lyft drivers" with "Uber partners."
The agreements provide set rates for drivers, who will be able
to rent from specified off-airport Hertz locations that have
on-site support. The cars can be used for personal driving as well
as for Uber or Lyft business.
Hertz rents cars under the Hertz, Thrifty, Dollar and Firefly
brands.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
June 30, 2016 09:45 ET (13:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Hertz Global (NASDAQ:HTZ)
Historical Stock Chart
From Feb 2024 to Mar 2024
Hertz Global (NASDAQ:HTZ)
Historical Stock Chart
From Mar 2023 to Mar 2024