Uber Partners with Hertz to Offer 50,000 Tesla Rentals to U.S. VTC Drivers

Oct. 27 (Reuters) – Uber Technologies Inc (UBER.N) on Wednesday announced it is launching a new partnership with car rental company Hertz offer 50,000 Tesla Inc (TSLA.O) vehicles as a rental option to its VTC drivers by 2023.

Uber drivers can rent a Tesla through Hertz starting November 1 in Los Angeles, San Francisco, San Diego and Washington DC, with the program expanding later this year to cities across the country, the rideshare company said in an article. blog.

The announcement comes after Hertz said on Monday it would order 100,000 Tesla vehicles by the end of 2022, which means half of the rental company’s Tesla fleet would be reserved exclusively for Uber drivers.

News of Tesla’s biggest-ever order spiked stock prices and saw the market value of the electric vehicle company surpass $ 1,000 billion on Monday. Read more

Tesla shares on Wednesday rose 3%, while Uber shares were down 1.4%. Hertz shares rose 2%.

Hertz also announced on Wednesday a separate partnership with online used car dealer Carvana Co (CVNA.N), whose shares rose 3% in morning trading. Under the deal, Hertz would reduce its reliance on mass auctions to offload used rental fleet vehicles and instead sell vehicles directly to consumers through Carvana’s sales channels.

For Uber drivers, Tesla rentals will start at $ 334 per week, including insurance and maintenance, and will consist primarily of the company’s Model 3 sedan. Uber said the rental cost will drop to $ 299 per week or less as the program expands over the coming year.

Wednesday’s deal represents Uber’s most important step yet to expand the use of electric vehicles on its platform. The company is committed to only operating electric vehicles on its US, Canadian and European platform by 2030 and globally by 2040.

But only a few limousine drivers can afford the higher prices of EV stickers, and in 2019, just 0.15% of all Uber miles in the United States and Canada were driven in electric vehicles, according to data from the United States. ‘business.

Motorists produce more pollution per passenger mile traveled because they spend more than a third of their time driving empty. Researchers generally assume that electrifying an electrically-assisted vehicle reduces the same amount of CO2 as converting three regular gasoline vehicles. Read more

Hertz, which is emerging from bankruptcy, is hoping the focus on electric vehicles will set the once-dominant brand apart from its competitors.

Automakers are also seeing partnerships with ride-sharing companies as a convenient way to expose more consumers to fuel-less vehicles.

Tesla did not respond to a request for comment.

Reporting by Tina Bellon in Austin, Texas; edited by Richard Pullin and Mark Porter

Our Standards: Thomson Reuters Trust Principles.

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