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Hertz to rent out Half the Tesla Cars from the Deal to Uber Drivers

Hertz stated Wednesday that it would make up to half of its battery-electric vehicles available to Uber drivers in an extended rental program. In addition, it will “initially” add 100,000 Teslas to its U.S. and European fleets only days after announcing. also inked a partnership with Carvana, a used car reseller, to provide automobiles from its rental inventory. In the face of a significant shortage of both new and previously owned vehicles, companies like Carvana struggle to obtain merchandise.

The long-struggling rental company announced Monday that it would buy at least 100,000 Teslas, with other battery-electric vehicles from other manufacturers being considered. Mark Fields, Hertz interim CEO, said, “Today’s partnership with Uber is another major step forward in becoming an essential component of the modern mobility ecosystem and executing on our commitment to being an environmentally forward company.”

According to Hertz, the move will result in “one of the world’s largest [rental EV fleets].” Customers can rent Tesla Model 3 sedans at sites in Los Angeles, San Francisco, San Diego, and Washington, D.C. beginning early next month, with plans to extend nationally by the end of the year. Drivers will be able to charge their cars at sites as well as Tesla’s Supercharger stations. A small number of Uber drivers now operate electric vehicles, which can travel further distances without needing to recharge as frequently as previous battery-electric vehicles due to the increased range afforded by Tesla’s products.

Another major issue that the agreement should address is cost. Model 3s will initially be available for rent for $334 per week before taxes and fees. However, Hertz intends to reduce this to $299 in the future. In addition, Uber drivers must have a minimum rating of 4.7 stars and have completed at least 150 journeys for the ride-sharing service. Tesla’s tie-ups with and now Uber are the company biggest deals ever, as its market capitalization surpassed $1 trillion on Monday. With the opening of plants in Texas and Germany, Tesla is on track to treble its production capacity. It already has manufacturing facilities in California and China.

During that period, it sold off a significant portion of its daily rental fleet.  is rebuilding its network, but in the future, it hopes to employ Carvana to sell off unwanted vehicles. It historically sold vehicles through a number of methods, including car auctions and its own Hertz Car Sales network. It’s the first time a daily rental company has worked directly with a used car retailer.

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