Hertz teams up with Uber and Lyft

Nitedriver

Well-Known Member
This is getting interesting, although I think the prices are still too high, , I am sure this will def get bigger ad prices will drop, right now they are around $ 200 a week, still high but wait another 6 or 12 month it will drop...

http://money.cnn.com/2016/06/30/investing/hertz-teams-up-uber-lyft/

Hertz said it will begin renting cars to Lyft drivers in Los Angeles and San Francisco and more markets are expected to follow soon. That's in addition to the Las Vegas and Denver markets already in the Lyft pilot program. The Uber deal is starting in LA and moving to other markets as well.

Hertz praised the "dramatic growth in the ride sharing" world and signaled it would largely be using cars that are "rotating out" of its consumer rental fleet due to age.

General Motors (GM) has also been intrigued by the ride-sharing space. GM owns a $500 million stake in Lyft, and also an agreement that allows drivers to rent its cars.

Uber also a rental car agreement with Enterprise. Under that alliance, Uber drivers can rent an Enterprise car for $210 a week in certain markets, plus taxes and fees.

Hertz has been struggling lately, with its stock slumping 40% over the past year amid pricing pressure. The car rental company has been cutting costs and recently announced plans to separate its equipment-rental division into a separate public entity.
 

Gees2016

Well-Known Member
Ride sharing is making its mark.....hurting the cab and rental industry.....cant beat them join them.
 

kevink

Well-Known Member
Hertz's stock is also slumping due to sketchy financial reporting as well. They've had to restate earnings for a number of years, dating back to 2009-2010 or thereabouts.

They paid far more for Dollar/Thrifty than the company was worth.

They loaded up their fleet with JUNK and I do mean JUNK starting in 2007 - buying used cars (usually the same ones that they had turned back to the manufacturer just a month or two prior) most of which were usually at 36K plus on the clock when they purchased them. They loaded up the fleet on what are called "risk" cars meaning the company owns them outright. But sooner or later you have to dump them. It can work well and be profitable if done right, but it's always subject to the whims of the marketplace. If the market goes south and you need to dump a lot of very high mileage used rental cars, you're SOL and you take a bloodbath.

Not to mention customers were appalled to be paying Hertz rates to rent a car with 50K on the clock.

They also spent a sizable sum to relocate corporate HQ from Park Ridge, NJ to Florida.

When Ford owned it, Hertz was a great company to work for - it was well run, and they had the best fleet in the business. Once they sold it to private equity things went south fast. It was actually a leveraged buyout, so the private equity consortium borrowed Hertz money to...you guessed it, buy Hertz. They saddled the company with debt that it never had before, debt that needs to be repaied. Hertz is still trying to recover from all of ex-CEO Mark Frissora's blunders.
 
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