After $ 4 billion deal with Tesla, Hertz says it will lease half of these cars to Uber drivers

Days after announcing that it would “initially” add 100,000 Tesla to its US and European fleet, car rental company Hertz said on Wednesday it would make up to half of the battery-electric vehicles available to customers. Uber drivers as part of an expanded rental program.

In addition, Hertz has signed an agreement to supply used car retailer Carvana with vehicles from its rental fleet. Companies like Carvana are struggling to find inventory in the face of a severe shortage of new and old vehicles.

“Today’s partnership with Uber is another major step forward for Hertz becoming a vital part of the modern mobility ecosystem and delivering on our commitment to be an environmentally responsible company,” said Mark Fields, interim CEO of Hertz.

The longtime rental company said Monday it would buy at least 100,000 Teslas – while also examining the possibility of adding battery-electric vehicles from other manufacturers. The move, Hertz said, would create “one of the biggest [rental EV fleets] in the world.”

Starting early next month, customers will be able to lease Tesla Model 3 sedans at Hertz branches in Los Angeles, San Francisco, San Diego, and Washington, DC, with plans to expand nationwide by the next. end of the year. Motorists will be able to charge at Hertz locations and at Tesla’s network of Supercharger stations.

A handful of Uber drivers already use electric vehicles, which the longer range Tesla products offer allows without having to recharge as often as older battery-electric vehicles. The deal with Hertz is also expected to tackle another key hurdle: cost.

“It’s important to note that owning an electric vehicle is still too often more expensive than a traditional gasoline-powered vehicle,” said Andrew Macdonald, senior vice president of mobility and business operations at Uber, in a statement. “This partnership is a step forward in advancing electrification on the Uber platform.”

Drivers will initially be able to rent Model 3s for $ 334 per week before taxes and fees. Hertz plans to eventually lower it to $ 299. Uber drivers will need to be at least 4.7 stars and have logged at least 150 rides for the ridesharing service.

The mergers with Hertz and now Uber represent the biggest contract ever for Tesla, whose valuation reached $ 1,000 billion on Monday. Tesla is preparing to double its production capacity with the upcoming plant openings in Texas and Germany. It already operates assembly plants in California and China.

For Hertz, the deal aims to position the company as a technology and environmental leader in a restructuring after completing 13 months of bankruptcy in June.

During this time, it emptied much of its daily rental fleet. Hertz is rebuilding the network but plans to use Carvana as a more efficient way to sell used models in the future. Previously, it used a variety of methods to dispose of vehicles, including car auctions and its own Hertz Car Sales network. This is the first time that a daily rental company has partnered directly with a distribution chain specifically focused on used vehicles.

“Our new partnership with Carvana will help Hertz provide a technological and scalable channel throughout the lifecycle of our fleet,” Fields said Wednesday.