Hertz Announced Deals with Lyft and Uber to Supply Rental Cars to Drivers

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Hertz Global Holdings Inc. (NYSE:HTZ) signed deals on Thursday with Uber Technologies Inc. and Lyft Inc. to supply rental cars to drivers, hoping to help Hertz make more money out of older vehicles. 

Under the new deal, Uber drivers in Los Angeles could rent from specified off-airport locations that have on-site support with set rate and vehicles could be used for business and personal driving. Two or three-year-old models, which have already been moved out of the daily rental fleet, mainly consists of the cars for rental in the new deal. Hertz’s Chief Executive Officer John Tague mentioned that the cars provided for Uber and Lyft are in good condition and well-maintained. The rental service will also expand to other cities.

“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,” Tague said in a statement on Thursday.

In November 2015, Hertz started to cooperate with Lyft in Las Vegas and Denver in a pilot project. In the program, Lyft rent SUVs from Hertz to drivers using its service at discount rate, which were discounted 35% to 40% below normal. SUVs could be rent for daily, weekly and monthly in Las Vegas last year. Standard SUV could be rent for $25 a day, $150 a week or $540 a month; premium SUV could be rent for $65 a day, $390 a week and $1,400 a month. In the new deal this year, Hertz said it would expand the program to Los Angeles and San Francisco.

The cooperation of Hertz and Uber, Lyft is not the only partnerships between car rental companies and ride-sharing services. General Motors Company worked with Lyft to develop a fleet of self-driving taxis. Fiat Chrysler Automobiles NV also discussed with Uber about a possible cooperation on driverless car.

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